Principles of Risk Management and Insurance, 13th Edition

Reporting Forms

Some business firms have wide fluctuations in the value of business personal property during the policy period, especially in the value of inventories held for sale. A reporting form requires the insured periodically to report to the insurer the value of insured business personal property.⁷ The major advantage of the reporting form is that premiums are based on the actual value of the covered property if the insured reports accurately and on time rather than on the limit of insurance, which may be greater than the value of the covered property on hand. However, coverage is subject to the policy limits even if values in excess of those limits are reported.

Under the ISO commercial property program, the value reporting form is used ...