Aviva adds terrorism cover as standard for digital SME policies in market first

Aviva says it has become the first UK insurer to include terrorism cover as standard across selected digitally traded commercial products for small and medium-sized enterprises (SMEs).

The change, which came into effect on 24 August 2026, comes following the launch of Pool Re’s new incentive scheme.

The move will see eligible SME customers automatically receive terrorism protection as part of their policy, rather than having to purchase it as an optional add-on.

Initially, the cover will be included within Aviva’s digitally traded commercial combined, office and surgery, property owners, shop and salon and computers products, with contractors combined set to follow. Existing policyholders will gain access to the cover at renewal.

Dave Martin, managing director of UK commercial and chief distribution officer at Aviva, said many businesses remained exposed without realising it.

“As the first insurer to include terrorism cover as standard on digitally traded products, we’re helping more customers access protection that they may otherwise go without,” he added.

Closing the protection gap

Pool Re’s incentive scheme comes after market estimates suggested that only 4% of SMEs currently buy terrorism cover.

It aims to widen access to terrorism insurance by reducing the cost of reinsurance for participating insurers.

Pool Re chief executive Tom Clementi said Aviva’s move would help tackle a longstanding protection gap.

“This move by Aviva will help to close the SME protection gap and thereby enhance the economic resilience of the UK economy to the threat of terrorism at a time of significant geopolitical uncertainty,” he said.

Aviva added that it would continue to review whether the approach could be extended to further digitally traded commercial products.