Aviva has become the first UK insurer to include terrorism cover as standard across selected digitally traded commercial insurance products for eligible small and medium-sized businesses.
The change, which took effect on 24 August 2026, means qualifying SMEs will automatically receive terrorism protection rather than having to purchase it as an optional extra.
The move follows the launch of Pool Re’s SME Incentive Scheme, designed to increase the number of smaller businesses protected against terrorism-related damage and disruption.
Aviva says terrorism cover will initially be included on its digitally traded Commercial Combined, Office & Surgery, Property Owners, Shop & Salon and Computers policies, with Contractors Combined expected to follow.
It applies to eligible risks in Great Britain where property or material damage cover is selected and the combined property damage and business interruption sum insured is below £10 million.
Can you insure against terrorism?
Yes. Businesses can buy insurance against losses caused by terrorist attacks, although terrorism has traditionally been excluded from many standard commercial property policies unless specifically added.
Aviva says market estimates suggest only around 4% of SMEs currently purchase terrorism cover, despite some business owners assuming they are already protected.
Under Aviva’s new approach, eligible customers taking selected digital policies will have the protection automatically included, with the cost incorporated into their overall premium.
What does an SME insurance policy cover?
SME business insurance can combine several types of protection depending on the company and policy. These may include buildings and contents, stock, equipment, business interruption, public liability and employers’ liability insurance.
The exact level of protection varies significantly between policies, so businesses should check individual exclusions, limits and excesses.
What is covered by terrorism insurance?
Terrorism insurance is designed to protect businesses against insured losses resulting from acts of terrorism.
Depending on the policy, this can include physical damage to business premises, equipment and stock, alongside associated business interruption losses.
This can be important even when a business is not directly targeted, as a terrorist incident nearby could cause damage or prevent staff and customers from accessing premises.
What is terrorism insurance and what does it cover?
Terrorism insurance provides financial protection against damage and disruption caused by terrorist incidents that may otherwise be excluded from ordinary commercial insurance.
Pool Re CEO Tom Clementi said Aviva’s decision should help close the SME “protection gap” and improve the UK economy’s resilience to terrorism.
Aviva plans to review whether standard terrorism protection can be extended to more of its digital insurance products.
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