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Preparing BOP programs for the coverage needs of a changing world

In a world reshaped by social change, a volatile economy, advancing technology, and the ongoing ripples of the pandemic, many small businesses and their insurers operate in a different landscape from the one they knew even five years ago. Transformative trends are unfolding on multiple fronts, such as: 

  • The gig economy, where non-salaried workers offer an expanding range of services through online platforms
  • Work from home, which is shrinking and dispersing the office footprint from traditional centralized facilities to co-working spaces, home offices, and coffee shops
  • The spreading decriminalization or legalization of cannabis at the state level, which is creating a whole new class of businesses—sometimes pushed to the margins of the financial system

Verisk’s ISO Businessowners (BOP) program is undergoing the most significant changes since its inception in 1971.

Staying ahead of the changes

As these and many other trends accelerate, from online retailing to renewable energy to the constant evolution of cyber threats, the tools available to small commercial insurers must keep pace. The small-business sector’s expansion—more than 300,000 new enterprises in four of the past five years—adds to the urgency.

With these needs in mind, Verisk’s ISO Businessowners (BOP) program is undergoing the most significant changes since its inception in 1971. The enhanced BOP program introduces nearly 160 new classifications and updated 2022 North American Industry Classification System (NAICS) codes that are more complete and current. Also included are new rules and advisory prospective loss costs for hired and non-owned autos and drones, as well as updated classifications that complement the ISO Micro-BOP. You can find out more about our program updates here

Reaping the rewards

Many of the latest BOP updates flow from Verisk’s regular review of its offerings against needs that emerge through market research and customer interactions. Staying current with these updates can yield multiple benefits for insurers:

  • More accurate classifications can support more precise pricing, help reduce premium leakage, free up additional revenue and resources, and ultimately contribute to higher profitability.
  • More granular classifications can support tailored marketing and underwriting efforts for emerging or expanding customer bases.

Insurers need not go alone in navigating these changes—or any of the actuarial and regulatory challenges of starting, growing, and tailoring a BOP program. Verisk’s Insurance Consulting services are a ready resource to supplement these solutions.

Joseph Lam

Joseph Lam is director of commercial casualty product development and can be reached at

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