Some businesses carry inventory that swings sharply during the year. A fixed limit high enough for the peak means paying for coverage that is unused most months, while a lower limit leaves the peak underinsured.

A value reporting form modifies the insurance provided by the BPP coverage form. The insured files periodic reports of the values on hand, and the premium is adjusted to the values reported. The business ends up paying for the values it actually had.

The insured's side of the bargain is reporting on time. If the insured fails to make the required report of values, the most the insurer will pay is 75 percent of what it would otherwise have paid. Example: a loss would otherwise pay $160,000, but the first required report was never filed, so the insurer pays $120,000. If a later report is missed, payment is limited to the values last reported.

Do not confuse it with two other options. Agreed value deals with the coinsurance condition, and inflation guard raises limits gradually over the term. Neither follows inventory up and down the way value reporting does.