An indemnity insurance scheme fit for Santa Claus

Santa Claus might have a lot of magic up his two red sleeves but his North Pole manufacturing headquarters still has a lot of real world business risks worthy of a suitable professional indemnity insurance scheme.

It wouldn’t take too long to list the ten top liability factors that expose good old Santa to possible claims of negligence. These would include such things as workplace injury, employment disputes amongst the elves and obvious supply chain problems. Of these the supply chain issue would figure as easily the most serious risk to Mr Claus’ business, even if it is a non-profit making organisation.

The key reason for this particular risk factor is the extreme remoteness of Santa’s manufacturing base and this factor alone would get him thinking of a PI insurance scheme. This would cover him if materials for toys, for instance didn’t materialise on time or Rudolph decided to go on a moonlight flit at the wrong moment.

Santa’s transport logistics remain the single most important risk factor – the distribution of goods to over two million individuals all within a twenty four hour period is likely to lead to any number of claims of negligence by disappointed clients if things go wrong.

No doubt general liability insurance would cover Santa for potential collisions while airborne or accidental damage to chimneys and fireplaces by overenthusiastic reindeer.

There is also a potential for cases of discrimination simply because of the unique nature of the workforce at the North Pole manufacturing plant and this stresses the importance of PI insurance cover for the sort of claims that could be envisaged.

Considering the total liability that Santa should consider insuring, a premium of around twelve million pounds would not be excessive. This figure is tipped to rise next Christmas as is the cost for taking out PI insurance by mere mortals as well in the coming year.

Santa is seen as a relatively low risk by most liability insurance brokers due to the very small number of previous claims over the almost two hundred years that Mr Claus’ operation has been in business.

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