Would Santa Claus be a high insurance risk?

He can deliver presents to all of the world's children, powered by nothing more than chocolate chip cookies and tall glasses of milk. But can Santa Claus work his special brand of magic when it comes to designing the perfect insurance policy?

A recent article sought to explore the answer. 

Author Matt Zollner notes the isolated nature of St. Nick's workshop. It's designated as "protection class 10", which means that should a fire break out, there isn't a recognized public department to deal with the fallout. By comparison, "protection class 1" indicates the best possible blaze coverage. This fact alone limits him to a "high-risk" policy. His workplace is also quite old, and, even though everything seems to be in working order, it doesn't necessarily use the latest in technology. 

He'll also need coverage for the sleigh he rides. While Santa won't need a personal policy since he uses it for business, it qualifies as a commercial-auto exposure. With the conditions he faces and the wideness of his delivery range, he's going to need some pretty comprehensive insurance. 

Depending on the exact classification of the elves who work for him, Santa might also need insurance for subcontractors. While most appear to be full-time employees, it is possible that some work on an irregular or seasonal basis, since the nature of their business indicates heavy seasonal fluctuation. As the owner of a business, it's incumbent upon Santa to adequately provide for any constructions his workers might build.

Between business-auto, property and general liability insurance for subcontractors, St. Nick is going to need some pretty unique coverage. If you're looking to get him a gift this year, you might want do your Christmas shopping at an insurance provider. 

 

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