Parcel piracy is an ‘interesting risk’ for Santa, but it’s ’not the biggest’, says Insurance Museum trustee

You may rest assured that Santa Claus is most certainly insured by Lloyd’s of London.

During December, charity Insurance Museum revealed that in 2010, a policy had been underwritten for St Nick to cover him for accident and illness in the run up to Christmas day.

The policy included an indemnity clause, which protected Santa if anyone tried to sue him for not receiving their presents as “parcel piracy” was also rife back then.

Lloyd’s also set up a 24-hour hotline for Santa just in case of an emergency and he has to evacuate from anywhere.

60 seconds with Paul Miller

Paul Miller

Paul Miller 

With “parcel piracy” at its peak during the Christmas season, Paul Miller, trustee at the Insurance Museum, told Insurance Times that this was an “interesting risk for Santa” and one that Lloyd’s offered protection against back in 2007, which included insuring against the risk of the Grinch pinching presents.

For Miller, the biggest risk Santa is insured for is him injuring himself when trying to shimmy down people’s chimneys as well as the risk of landing on something breakable or knocking over a priceless vase.

Miller added: “An annoyed child that Santa placed on the naughty list may sue him for defamation, causing him to claim on his directors and officers policy.”

Therefore, insurance is paramount to Santa’s job.

Miller continued: “Firstly, he’ll need to ensure that the elves’ workshop is covered with a commercial property policy. Those helpers will also require Father Christmas to take out employers’ liability cover, in case one of them cut themselves while wrapping a present or drop a heavy box on their foot.

”He will also require professional indemnity cover, should a claim be made by a disgruntled child who didn’t receive the gift they wanted.

“A public liability policy will protect Santa, should one of the presents fall from his sleigh and land on somebody below. Aviation insurance will cover his sleigh.

”I would also advise Santa to speak to his broker about a business interruption policy. If an insurable loss were to arise from a fire on his workshop, or due to heavy snow, he’ll need to continue to pay his elves whilst the space is out of action, utility bills and so on.”

Miller explained that in 2016, Aviva quoted Santa for the insurance of his sleigh at £79 000 per year.

He added: “Santa would be fully covered for any breakdowns, bumps and repairs he might encounter. But as you might expect, there were a few stipulations – Santa Claus must not operate his sleigh under the influence of more than 1,000 mince pies, must go at a speed of more than 500m/s, must not be left unattended on a slated roof, only Santa may drive the sleigh.”

This means no getting the elves to cover for Santa after too many sherries.

Lastly, Miller said: “The sleigh is left covered up and secure from 25 December to 23 December [the following year].”

To activate the policy, Santa must participate in a full medical examination, provide a flight map detailing his exact route on the 25 December, show international aircraft xertification for his sleigh and allow a bloodstock specialist to inspect Rudolph and his friends.

Miller noted: “When Walt Disney tried to insure Mickey Mouse at Lloyd’s in the 1930s, underwriters refused on the basis that he is immortal.

“Thankfully, children the world over will be pleased to hear that Santa would receive the same response. Nobody can replace Father Christmas, that would be a recruitment brief that’s impossible to fill.”