Why Santa Needs Errors & Omissions Insurance Too

by | Commercial Insurance | 4 comments

Who Needs Errors and Omissions Insurance

Earlier in the season, we penned an article on Who Needs Errors and Omissions Insurance. Ironically, we made a grave mistake and neglected to include perhaps the most famous example of all – St. Nick.

That’s right, while Santa may be known as a jolly fella who spreads cheer throughout the Holidays, he runs the largest organization in the world. Amazon doesn’t compare to what Santa’s workshop has to prepare for, manufacture, and deliver each year. While good intentioned, Kris Kringle may not realize that the entire operation is at risk. It’s not a lack of believers to blame, but the fact that thus far he has neglected to secure one important form of coverage – Errors and Omissions insurance. Below are key examples of what may go wrong up there at the North Pole, and how the right policy can help protect against it all.

3 Risks of Claims Against Santa Claus’ Workshop that Errors & Omissions Insurance Could Protect Against

I. Accidentally Putting Someone on the Naughty List

This is the most glaring example of how a grievous error could land Santa in claims court.

Imagine if a child had been a little angel all year long, helping old ladies across the street, getting great grades at school, and doing chores at home without the slightest protest. This child fulfilled his/her defined duties (as set by Santa) and as such expects to be compensated accordingly. If an administrative error at the North Pole had placed this child on the Naughty List, he/she would go without presents on Christmas morning. With one incorrect entry, the Holidays would be ruined for the respective household. The child’s parents would most certainly take legal action against Santa and the entire operation. Without Errors and Omissions insurance to cover the claim, Santa’s workshop may be forced to close for good. Not cool.

II. Neglecting to Include Proper Instructions with Toys 

Each Christmas morning, moms and dads are thrust into DIY builder mode. Their children unwrap toys from Santa that require detailed instructions for how to put them all together, and enjoy them safely. It’s an inconvenience (as any parent can attest to) but a necessary duty that is ultimately made viable by the inclusion of a user’s manual. But what if Santa’s elves neglect to include these all-important instructions and manuals? Or what if they include the wrong set of instructions? The fallout would be unthinkable, as frustrated parents tear apart the house in search of the right batteries, wrench, Allen key, and more. Pain and suffering along with malfunctions in use (of the toys) and potential damages may ensure. After hours of fruitless attempts to put their precious children’s toys together – parents would be left with only one recourse – contact a lawyer to bring Santa and his crew to claims court. If Santa is not covered in this neglect to include critical instructions, only Errors and Omissions insurance could bail him out.

III. Delivering Presents…on Boxing Day

Santa and his elves work tirelessly 364 days of the year to ensure that ALL deadlines are met in time for his departure on Christmas Eve. While for most businesses, a missed deadline is an inconvenience, with impacted customers/clients often understanding, even if a discount needs to be provided to smooth things over. But when it comes to delivering presents to children across the world, a Boxing Day arrival is unthinkable. The legal ramifications would be ruinous. Thankfully, claims against organizations for missed deadlines is a part of Errors & Omissions insurance.

Santa, if you (or someone in North Pole admin) is reading this, we plead with you to contact Park Insurance today to learn more about why you need Errors & Omissions insurance before the season comes to a close. The same goes for all other businesses out there.

~ Merry Christmas & Happy Holidays Everyone ~

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