Businesses across the country scramble to get ready for the Holidays. As a part of their preparations, savvy organizations get a review of their commercial insurance policies to ensure that they are prepared for unfortunate events that may occur during the season. However, the largest manufacturing and delivery company on the planet continues to operate under an umbrella of risk during the Holiday season – Santa’s Workshop. In doing so, the fine folks at the North Pole are sledding on thin ice. Perhaps they don’t realize that they put the happiness of children and all other believers at tremendous risk by remaining unprotected. Should there be a succession of successful claims made against Santa’s Workshop, Christmas as we know it may cease to exist. Park Insurance cannot stand idly by any longer. Below is a breakdown of three types of policies Santa must secure to cover vulnerabilities that are likely to occur. Let’s review!
3 Insurance Policies Santa’s Workshop Requires to Protect Against Liability Risk at the North Pole
I. Errors & Omissions Insurance
Santa is extremely vulnerable when it comes to certain errors and omissions that may occur at his Workshop. Accidentally putting a child on the Naughty List, neglecting to include a user’s manual with toys, and missing Christmas Eve delivery deadlines are all examples. To protect against related claims, the Workshop must secure Errors & Omissions coverage. Read more about why Santa needs E&O insurance right away.
II. Directors & Officers Liability Insurance to Protect Against Discrimination
We’d like to think that Santa’s Workshop is removed from concerns about workplace discrimination. However, when you look back in time, there is a notable history of it. Top level directors (Santa and C-level executives) were complicit throughout.
It all stated with Rudolph, who was discriminated against by all of the other reindeer. They laughed, called him names, and didn’t let him join in on their games. Even worse, is that Santa did nothing to stop this behavior, and even joined in on the criticism, until he realized he needed Rudolph to assist with Christmas Eve delivery.
You’d think the organization would have learned its lesson. However, in 2003, a documentary was released detailing the experiences of Buddy the Elf. Buddy was different from the other elves (significantly taller with challenged capabilities) and as such he was treated somewhat differently by those at Santa’s Workshop. Buddy was made to feel as if he was a cotton-headed ninny-muggins, which certainly hampered his workplace productivity. Ultimately he was sent packing by Santa. While fellow staff attempted to make him feel important, they just came off a patronizing, if not condescending:
“You change the batteries in the smoke detector – triple AAAs – and in 6 months you’ll have to change them again.”
Given the history, it’s important for Santa’s Workshop to secure Director’s & Officers liability insurance which covers acts such as the wrongful dismissal of an employee and employee discrimination.
III. Cargo Insurance
Problems in the supply chain have been in the news for a solid three years. It has impacted nearly every business across the country and world. Santa’s Workshop is not removed from this. Their single-day Christmas Eve delivery schedule is already a logistical nightmare. When you factor in extreme weather events due to climate change and crowded air space due to renewed interest in travel, a lot can disrupt Santa’s sleigh between his start at the International Date Line through to his final deliveries in South America. Honestly, how can something not go wrong along his 510,000,000 kilometer route?
Cargo insurance will provide coverage for damage or destruction to toys, the sleigh, any other equipment/materials used while in transit. This policy may also protect Santa and Workshop against claims that may arise from children, parents, and other stakeholders who are displeased by gifts that are lost, damaged, or delayed due to delivery issues.
Like with any organization, Santa’s Workshop requires comprehensive commercial insurance. More so, in fact, as the happiness of millions of believers depends upon the North Pole’s continued operation. If you work in administration at the Workshop, please contact Park Insurance right away for a consultation. The same goes for any other business out there who may otherwise enjoy the opportunities to come with the Holiday season.
