I want to take a step away from the serious this month. There has been too much seriousness and not enough amusement. But now it’s the holidays and we need lights, sparkle and a little eggnog. I love the holidays—the decorations, the music, the movies. Just about everything. But how does one talk about insurance when thinking about the holidays. For me, I start with my father.
My father, a long time claims adjuster, loved to bring home tales of his most unusual cases. With his Irish charm and blarney, he would delight his family with tales of the unusual characters he came across in his cases. He had claims involving clowns (literal and figurative), pettifoggers, and even a few saints. One of his most delightful stories involved a plaintiff who had soft tissue injuries with questionable causation. My father thought it was a case to take to trial and let the jury decide who to believe. But there was one problem. The plaintiff, who was an overweight, older man with a beard, showed up to court wearing a red sweatsuit. With the case being tried three days before Christmas, my father resolved the case—in his view for more than it was worth—because “no one rules against Santa Claus in December.”
In December, there are impersonators dressing up as the jolly fat man. Santas appear at malls, parades, tree lightings, holiday parties and charity events. And these Santas face claims for personal liability, alleged abuse, and assault and battery. If a Santa uses a reindeer or dog as part of his portrayal, that Santa can face third-party bodily injury or third-party property damage claims. In this crazy world, Santas even worry about active shooters who crash festive events.
These Santas are being marketed “Santa Claus Liability Insurance.” If a child falls off Santa’s lap, trips over his big black boots, or chokes on a cookie, Santas rightly fear that they might be sued. And like Santa suits, the policies come in many sizes—from a one-day policy to something more substantial. There is apparently a vibrant insurance market for Santas.
In addition to these real-life insurance policies for Santas, there is considerable online tongue-in-cheek discussion as to what insurance the fictional Santa should buy. Insurance experts ask the “tough” questions about the insurance on Santa’s sleigh, including whether it should be considered a personal or commercial vehicle and whether it is more aircraft than motor vehicle. Others discuss whether reindeer are pets or livestock. And then there are those who want to make sure that elves have enough insurance benefits, particularly considering their rather unique lifestyle.
There are other insurance issues being discussed online, including:
- Whether Santa needs disability insurance.
- Whether Santa needs cargo insurance because of the huge amount of toys he carries in his sleigh.
- Whether Santa needs comprehensive and collision or only one.
- Whether Santa should be rated as a high risk, particularly since there is unlikely to be a firehouse near his workshop.
- And, of course, whether elves should be classified as employees or independent contractors.
Then there is the potential liability that comes with the lists that Santa keeps. No one wants to be placed on the naughty list, so Santa risks libel suits; he needs personal and advertising insurance. Then there is the list itself, which holds a great deal of personal information. The list can be hacked and held for ransom—and any breach may trigger disclosure obligations. So cyber insurance is more of a need than back in the Dickens era.
And then there is the need to protect those key players in the Santa organization. Perhaps Rudolph should have his nose insured, like Betty Grable’s legs. While insuring Rudolph’s nose is fanciful, there was a “Santa to the Stars” that insured his white beard with Lloyd’s of London. Santa may have a rated lifestyle as he is a tobacco user who eats too many candy canes to be healthy. But Santa is special, even if he smokes a pipe. Five years ago, Insure.com declared Santa an essential worker—and I still agree with that assessment.
Beyond Santa, there are online articles concerning how insurance companies might handle Christmas movie mishaps. One opines that the damage to the Griswold family home in “National Lampoon’s Christmas Vacation” would not be covered because most homeowners policies do not cover damage caused by rodents. Scott Calvin, the hero of “The Santa Claus,” however, would likely be protected by his homeowner’s insurance if Mrs. Claus decided to sue—after all, her husband fell off Calvin’s roof. And did you know that robbery and petty larceny increase considerably during the month of December, with some estimating a 20% increase. So, when the Grinch arrives, there will be some coverage for the property loss, but will it be enough for all the specialties under the tree?
So with the hope that we brought a smile to all thinking about Santa, the holidays and insurance—and with reverence to Clement Clarke Moore—we wish “Happy Christmas to all and to all a goodnight.”
Ms. Lambert has over 35 years of experience in handling complex commercial litigation and insurance matters. Ms. Lambert has worked on national class actions, significant litigation and regulatory matters for Fortune 500 companies. She has also assisted small and mid-sized companies and business executives with contract, real estate, liability assessment and commercial disputes that needed to be resolved quickly and efficiently. Ms. Lambert is best known as an attorney who knows the field of insurance. She has represented insurers, policyholders, and insurance producers in disputes both in court and before the Maryland Insurance Administration.
Ms. Lambert is the firm’s Co-Liaison for Harmonie, a national network of high quality law firms that serve the special needs of the risk industry. She can be reached by phone at 410-339-6759 or email plambert@pklaw.com.
This article is part of the December issue of the BIGI Maryland Newsletter. BIG I is a group made up of independent insurance agents in Maryland dedicated to supporting the business and professional development needs of independent insurance agencies of all sizes.
