santa business insurance

Is Santa covered this Christmas?

Far, far away in the North Pole, Santa was worried. With the busy Christmas period coming up and an ageing workforce of elves and reindeers, would this be the year something went wrong?

Santa had the same insurance for years now after a recommendation from his good friend, the Easter Bunny. But it has been year since he had sat down with his broker and gone over his insurance and his business risks.

For a busy and successful small business, Santa is typical of most business owners: “We are all busy — sometimes too busy — especially around the holidays, and I don’t have time to look at my insurance, it should be okay.” Is what I hear a lot.

If Santa was worried, he really should be looking at his insurance policy more regularly. As an insurance specialist, I’d be recommending Santa check the insurance for his North Pole operations:

  • Products & Public Liability – Santa builds and distributes toys to children all around the world. No other business has the same reach as Santa, yet he probably hasn’t updated his public and product liability cover. If one of his overworked elves makes a defective toy, Santa could be sued for compensation as a result of an injury to that child.
  • The elves’ tools — Santa should have employees’ tools coverage under his property insurance for the extra small equipment his workers bring to the workshop. While the North Pole doesn’t get many visitors, he should check his limit provided for theft under the property form.
  • Reindeer insurance — These are expensive livestock that Santa should insure against mortality, loss of use and major medical. If Rudolph breaks a leg Santa needs sufficient cover to make alternative arrangements.
  • The sleigh — This should be covered by an inland marine policy (like a cargo truck). As Santa used the sleigh to send his toys and goods to multiple locations, Santa needs to cover these valuables all over the world.
  • Business interruption — Santa works year-round to get ready for Christmas. Losing the workshop for just one day could make a difference between December 25 and December 26. Business interruption insurance would ensure that Santa has enough cash on hand to make sure he meets his obligations, continues to employ the elves and could set up a temporary facility at the South Pole.

Just like Santa, every business has specific risks that need to be reviewed regularly by an insurance expert. Like Santa, next time you think you’re too busy to properly review your insurance, remember that your family, staff and customers rely on you whatever may affect your business!


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The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.