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Christmas risk - You're covered, but is Santa? (continued)

There's a silly ad on television right now, for a smart phone. The phone is reading messages to Santa (Mrs. Claus writes to stay away from the cookies, for example), ending with a summary of Santa's schedule. "You have 3.7 billion appointments today," the electronic voice croons.

That kind of travel clearly creates risk for Santa, and a prudent Santa would manage his risk with a good insurance program. So, to that end, a brokerage firm developed a proposal for K. Kringle Manufacturing.

We discussed some of the basic insurance Santa would need in our last post. We had a few key categories left.

One important consideration is coverage in case of a crime. Remember the Grinch and the Nightmare Before Christmas?

There's also Santa's image to consider. If Betty Grable insured her legs for $1 million, shouldn't Santa insure his beard? It's an important part of his brand.

The workshop poses its own challenges. Santa will have to look into workers' compensation and liability coverage -- he has a large workforce, and it's a dangerous business.

What happens if the workshop's network server goes down, and the elves no longer have access to kids' Christmas lists or the naughty and nice list? What if there's a fire in the factory? Santa will need business interruption and equipment breakdown coverage on top of his property insurance.

Next time you watch a movie or a TV special about Santa Claus and his workshop, give yourself a candy cane every time you spot an insurable risk. It's something the whole family can do together.

And when you're done with Santa, start working on the Island of Misfit Toys. They have insurance issues and some contract issues -- maybe criminal liability, too, for kidnapping the unwanted toys.

It really is the most insurable season of all!

Source: Insurance Journal, "Risk Managers Find Santa Exposed, Urge $1 Billion Coverage Plan," Dec. 19, 2011

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