when it comes to obtaining insurance coverage to insure shifting inventory a company has several options 
they may purchase coverage which will include the historically highest or lowest level of stock on one side of this method the business is overinsured and spending capital where it is not needed on the opposite side the company is putting itself at grave risk if any of many hazards should befall them the company may split the difference between highs and lows and buy property insurance for the average amount of inventory once again they are gambling they are on the right side of any possible loss businesses may also use limit endorsements which allow changes to the policy throughout the term period but will also impact the premium however endorsements are problematic in that the business must foresee dates and inventory levels which still leaves the company open to risk the value reporting form gives companies yet another choice in setting limits for insurance premiums will usually be lower when using the value reporting method however this method requires dedication to avoid penalties from misreporting a business may face an assessment of substantial penalties for incorrectly filing forms particularly when a business later makes a claim for a covered hazard the insurance provider may also apply sanctions for under and overreporting of property values 2requirements for value reporting formsthe company chooses how often it should complete the form value reporting submittal may happen daily weekly monthly quarterly or even by the policy term depending on the frequency chosen there are mandatory dates that the full accounting must arrive at the insurer s office a company will also decide what to include and how to include items on the reporting form however a full and accurate accounting of costs for the reported stock is a requirement some businesses will use the value reporting form for inventory and use separate property insurance coverage for items such as computers desks equipment and other business property which remains relatively static throughout the year 3 in this way companies can maintain an appropriate level of coverage by adjusting each month s or each quarter s insurance needs based on current inventories the value reporting form must bear the signature of an authorized company officer or designated employee the company will need to identify any improvement of the location as well as new locations added since the last reporting period 