Santa is dusting off the old sleigh, making sure the reindeer are in tip-top shape and asking his elves to put in overtime to finish off all the presents to make sure every child across the globe gets a present. But, the business of being Santa is risky, with an increasingly litigious society to contend with.
While it is almost impossible to give an exact figure for the cost of premiums Santa would need to pay to ensure he is covered for the Christmas season and make sure everything goes smoothly, after careful analysis and consideration, Aon Risk Solutions, the global risk management business of Aon Corporation in conjunction, have estimated that it would cost £25m to insure Santa. This is a reduction of £5m since Aon was last asked to look at his insurance needs two years ago, as it takes in to account his good claims record and the current soft market for the insurance of international risks.
The reason for the hefty bill is down to the number of risks Santa would need to insure, and these would include:
– Aviation insurance – The risk of something falling off of Santa’s sleigh, or that the sleigh is damaged would be real risk to Santa’s Christmas operation, and the cost of repair is potentially huge
– Body part insurance – Santa’s beard is recognizable, and copied, all over the world. Should he have an accident in his workshop prior to the big night before he has time to re-grow his beard, insurance can cover this.
– Data protection insurance – Santa has to store all of the children of the world’s delivery information, and whether they’ve been naughty or nice.
– Goods in transit – Piracy has become an issue for companies transporting goods around the world over the last few years, and Santa is not immune. He should be particularly careful when approaching the Gulf of Aden
– Key person – while no one wants to think about it, being Santa is a risky business, so it would only be prudent of Mrs Clause to take out a policy in case the worst does happen to Santa.
– Livestock cover – The poor reindeer have to schlep Santa all over the world, so are integral to making sure the entire operation goes smoothly.
– Public Liability – If Santa’s sleigh should damage someone’s roof, or he accidentally drops a gift on someone from a great height, he could certainly be held accountable
– Supply chain risk – with the global economy still reeling from the global financial crisis, Santa’s workshop may be at a heightened risk of their suppliers going bust, and so need to insure against this risk.
– Theft – Santa’s workshop is a prime target for thieves, not to mention if he accidentally forgets to secure his sack of presents while he’s delivering someone’s gifts.
Karl Hennessy, managing director of Aon Global, commented: “Santa is a big and complex risk, but he’s coped every year so far. Assuming he’s kept detailed records of his claims records, he shouldn’t have a problem finding insurance cover. We at Aon wish the big man luck again this year.”
Source : Aon Benfield Press Release
