Aviva declares market first as it launches automatic 24-month BI uplift

Aviva has launched what it describes as a market first initiative to combat underinsurance among UK SMEs by automatically extending business interruption (BI) indemnity periods to a minimum of 24 months on its FastTrade policies.

The enhancement, announced on 15 October 2025, will apply to new business and renewals on Aviva’s commercial combined, office and surgery and property owners policies.

It will be provided free of charge, with the declared sum insured adjusted in line with the extended cover.

Aviva said its move followed research highlighting a significant protection gap between how long businesses believe it would take to recover from a major incident and the reality shown in claims data.

According to Aviva’s 2024 BI claims data, 43% of SMEs affected by a fire or flood required between 12 and 24 months to recover fully, while only 13% were able to do so within six months. However, just 21% of businesses currently hold BI cover for 24 months and 28% for 12 months.

The insurer also found that 91% of SMEs were confident they could recover from a major incident, but 86% believed they would do so within a year. One in eight firms admitted they might not recover at all without sufficient cover.

’Protected against the unexpected’

Rebecca Gambrell, managing director for SME and delegated authorities at Aviva, said the uplift marked an important shift in how insurers support business resilience.

“Our industry has long recognised that a significant proportion of our SME customers are underinsured, yet little has changed to truly address this issue,” she said.

“By extending cover to 24 months and increasing the sum insured, we’re giving SMEs the certainty and support they need to focus on growth, knowing they’re protected against the unexpected.”

Gambrell added that the initiative was designed to deliver “better customer outcomes” and reduce the financial vulnerability of SMEs facing major disruption.

Aviva said the uplift aims to align policy coverage more closely with the realities of recovery times, offering greater certainty for brokers and clients alike in the face of persistent underinsurance challenges across the commercial market.