What Does Value Reporting Form Mean?
A value reporting form is an insurance form that establishes the amount of coverage for commercial businesses on their variable inventories during the year. Businesses use it to report current inventory values to serve as the basis for coverage adjustments on the merchandise in order to avoid being under- or overinsured.
Insuranceopedia Explains Value Reporting Form
A business may have varying amounts of inventory during the year for a number of reasons. It may be due to changes in consumer needs or fluctuations in market demands. As these changes affect the inventory, the level of risk fluctuates accordingly. Therefore, businesses use a value reporting form to report the changing inventory value and thereby benefit from more appropriate coverage for each month or quarter.