Canadian Underwriter

Which policies does Santa need?

December 23, 2019   by Jason Contant

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Businesses large and small need all types of insurance coverage, and Santa’s elf workshop is no exception.

Below are some of Santa’s top North Pole policies (condensed from a recent infographic from specialist insurer CFC Underwriting):

  • Kidnap & ransom – Being a high-profile character, Santa is a potential target for kidnapping, particularly when flying over high-risk countries. K&R insurance covers any ransom payments and investigative costs to bring Santa home safely
  • Transaction liability – There are 2.2 billion children in the world; that’s a lot of presents! You wouldn’t blame Santa for trying to acquire another toy-making operation to support the workshop in the North Pole. Transaction liability insurance will cover any reps or warranties Santa is given and reduce his risk
  • Intellectual property Santa’s sleigh technology is a highly valuable piece of intellectual property and essential for all North Pole business! IP insurance will cover Santa against anyone who wants to put him out of business by alleging infringement on the sleigh design
  • Media liability – As an influencer known around the world, Santa has a large audience of followers who hand on his every word. As a precaution, Saint Nick keeps a media liability policy on hand in case he slips up and makes a comment about Scrooge or the Grinch that they consider defamatory. He also needs a licence to use any Mariah Carey holiday classics on his website!
  • Cyber: data breach – Private data, especially when relating to children, comes with a range of responsibilities. If the contents of Santa’s naughty and nice list (including the names, birth dates and addresses of minors) were to be comprised, Santa would face a range of reporting requirements and likely regulatory fines.
  • Cyber: business interruption – North Pole operations rely on technology for everything from knowing toy stock levels to accessing delivery location and status. If Santa’s list becomes inaccessible due to system downtime or ransomware, it could cause a massive, but luckily insurable, BI loss
  • Product recall – You can hardly believe how large those toy production lines are! When Saint Nick’s toy wheel suppliers sends through a batch of wheels made of glass instead of plastic, his handy product recall insurance will come into play. Not only will the policy help with the costs to recall and replace the faulty wheels, it will also cover any costs incurred while production is done.
  • Healthcare – Mrs. Claus runs a day spa for reindeer because self-care is important after flying all over the world in one night! Their healthcare policy keeps them covered against any bodily injury claims if a reindeer treatment goes awry.
  • Management liability – Santa runs a tight ship around Christmas, but it can be hard to manage thousands of elves. Jolly Saint Nick keeps a management liability policy on hand in case any elves claim wrongful termination, for instance, if he lays them off in January without reasonable notice.

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