Many farmers and business owners think insurance isn't necessary as long as their tractor or forklift stays on the property. Sounds logical, right? But that's no longer true since the regulations changed. The Motor Vehicle Liability Insurance Act (WAM) has been amended, and this has significant consequences for everyone who uses agricultural equipment, even if it's only on their own property.
The law now assumes that any vehicle that can move can also cause damage. Where exactly that happens doesn't matter. So even a tractor moving hay or a forklift used only in the barn is covered by mandatory insurance. The idea is simple: accidents happen on a farm, too. Think of a forklift hitting a wall or a truck, or an employee being injured while loading. These are situations you'd rather not experience, but they happen more often than you think. So whether it happens on a public road or behind the barn, it's all traffic in the eyes of the law. Without third-party liability insurance, you, as the owner, are the one who pays, and that can be quite expensive.
What exactly is stated in the law
The Motor Vehicle Insurance Act (WAM) primarily exists to protect victims of traffic accidents. Previously, this only applied to vehicles driving on public roads. However, since the 2023 amendment, the text has been revised. It now applies to "the use of a motor vehicle as a means of transport," regardless of location or time. In plain language, this means that as soon as a vehicle can cause damage because it is moving or capable of moving, it must be insured. Even if the vehicle is stationary, you are still required to insure it, as long as it has not been officially suspended by the RDW (Netherlands Vehicle Authority).
How the RDW checks
Since 2021, agricultural vehicles capable of exceeding 6 kilometers per hour must be registered with the RDW (Netherlands Vehicle Authority). Once registered, the RDW automatically checks whether the vehicle is covered by insurance. If it's missing, you'll receive a warning. If you don't respond, you'll receive a fine. That's a waste of money, as you can easily avoid it by arranging things properly. Do you use multiple vehicles and don't want to overpay? Then it's wise to compare insurance policies. Some providers offer a cheap car insurance which can also be interesting for agricultural vehicles. Especially if you have several of them driving around the yard, this can save you quite a bit annually.
Why an AVB is not enough
Many companies have Business Liability Insurance (AVB) and think they're covered. However, AVB doesn't cover damage caused by a vehicle. As soon as it's in motion or capable of being driven, it's excluded from that insurance. Therefore, separate third-party liability insurance is required. This covers damage to others, regardless of whether it happens on the road or between sheds. Anyone unsure which insurance is best for them is advised to seek advice. JW insurance They help entrepreneurs with these kinds of questions every day. Whether it's a shovel, telehandler, or regular tractor, they can tell you exactly what coverage is wise, so you don't pay twice, but also don't overlook anything.
Exceptions you should know about
There are some exceptions. A vehicle that has been fully suspended by the RDW (Netherlands Vehicle Authority) is temporarily exempt from insurance. You are therefore not allowed to use it, even on private property. Furthermore, small vehicles, such as narrow lawn mowers or sweepers under 1,30 meters wide, do not need to be registered. But be aware: this doesn't automatically mean they don't need insurance. If they could cause damage, they may still be required to have insurance.
What if you don't have insurance?
If you drive without insurance and cause damage, the Motor Vehicle Guarantee Fund will pay the injured party the damages. However, they will then recover the full amount from you. A mistake, a collision, or an accident can easily cost thousands of euros. And that's not all. The RDW (Netherlands Vehicle Authority) can also impose a fine and suspend the vehicle until it's insured. Damage to your own belongings or vehicles? You'll be responsible for that yourself.
Insurance is mandatory
Even if your agricultural vehicle never leaves the yard, you're still required to insure it. The law doesn't distinguish between "on the road" and "on the yard." Standard business insurance isn't enough; you really need third-party liability insurance. So make sure your vehicle is registered with the RDW (Netherlands Vehicle Authority), take out the correct insurance, and report the registration number to your insurer. This way, you'll avoid fines, financial setbacks, and unnecessary hassle. Nobody wants trouble that could have been prevented with a single phone call.