On July 24, 2025, Law 5/2025 was published in the BOE. This law amends the Consolidated Text of Law 8/2004 on civil liability and motor vehicle insurance.
This reform introduces relevant changes to motor liability insurance and general civil liability (CL) insurance, and its scope also extends to industrial and company vehicles that, until now, were not required to have compulsory motor liability insurance, even when operating exclusively within private premises.
In this article, we review the key points for companies operating forklifts, lift trucks or machinery in warehouses, yards or industrial facilities, as well as the insurance implications that should be taken into account.
1. What changes with Law 5/2025?
Some of the most relevant aspects of the reform include:
- Expansion of the concept of “motor vehicle” for the purposes of compulsory civil liability insurance. The previous restriction requiring an administrative authorisation for circulation is removed.
- New definition of “traffic event”, meaning that the use of a vehicle powered by mechanical force, even within private or publicly accessible premises, may fall under the scope of motor liability.
For a company operating machinery, industrial or construction vehicles, this may require a review of the asset catalog that could now fall under the obligation to hold compulsory motor liability insurance.
2. Why does this also affect forklifts and machinery in warehouses/yards?
Although the wording of Law 5/2025 is focused on “motor vehicles” in the context of road traffic, many forklifts, pallet trucks, lift trucks and agricultural machinery will fall under the scope of the reform:
- Forklifts exceeding 25 kg in weight or a maximum manufacturing speed above 14 km/h will be included as “motor vehicles.”
- It is highlighted that even if machinery operates exclusively within private premises (warehouse, facility, yard), the concept of “traffic event” could still apply, making it necessary to review current insurance policies.
- In general, companies are already required to have CL insurance for third-party damage, but the new element is that compulsory motor liability insurance may apply if the machinery meets the technical criteria, even without ever entering public roads.
Therefore, many industrial or logistics organisations must ask themselves:
Are my forklifts properly insured?
3. Implications for insurers and for the company
For corporate risk and insurance managers, the implications may be summarised as follows:
- Review of machinery fleet: Identify forklifts, self-propelled pallet trucks, warehouse or yard machinery that may meet the criteria of the Law (weight, speed, motor) and confirm whether they are included in the circulation/CL policy.
- Complementarity between operational CL and motor insurance: Many companies already have a CL or operational liability policy covering third-party damage caused by their activity. But if the machinery falls within the scope of circulation, a motor insurance policy meeting legal minimum requirements will be mandatory.
- Increased claims risk and therefore higher premiums in forklift fleet renewals: Due to the regulatory change, the sector expects higher claim rates in forklift fleets. Claims previously covered by general CL will now be channelled through the fleet insurance policy.
4. Conclusion
Law 5/2025 represents a significant change in compulsory insurance and civil liability for motor vehicles, with direct consequences for industrial companies operating self-propelled machinery.
If you manage forklifts, lift trucks or warehouse machinery and you have not yet reviewed your insurance program under this reform, now is the time to do so.
A timely review can prevent sanctions, coverage gaps or unnecessary duplications.
At O.Brokers, we help you analyse your machinery fleet, identify which vehicles are affected by the new law and design an insurance solution tailored to the regulation and to your company’s operational reality.
👉 The regulatory and claims environment is changing; anticipating these changes always makes the difference.
