Santa's Risks

We wait all year for Christmas to relax, spend time with family and watch Christmas movies. But one person can’t rest at all during Christmas – It’s Santa! Mr Santa Claus and his crew work all year round. Then on the 24th of December,  he and his reindeers fly around the world delivering presents. It’s a stressful job, hence why Santa is always knocking back those hot chocolates.

There are risks that can affect Christmas (Santa’s risks), the North Pole, Santa’s village, the elves and even his reindeers. Especially during Christmas, the risks are at an all-time high with possible mistakes, negligence and more.

Santa Claus is basically running a business in his workshop, where he is the CEO and elves are his employees. (wonder how many candy canes they earn). Even Santa’s risks can easily convert into lawsuits.

Hence, Santa has asked us to write this article about Santa’s risks and the best insurance to cover them. 

What Santa’s Risks Can Be Covered By Insurance?

Santa Liability

Santa Claus is basically providing a service by delivering toys on the 24th of December. He has been doing it for thousands of years and must have an accurate plan to reach each house. However, what if he accidentally delivers the wrong gift due to negligence? Kids expect Santa to provide the present from their list. A wrong present could harm the child and cause the parents financial loss.

Santa Liability.

One of biggest Santa’s risks is possible negligence on his side. Parents can sue Santa for not providing the service promised/expected.  Mistakes can happen even to Santa, especially when delivering presents to millions of children.

Fortunately, Santa can purchase professional indemnity (PI) insurance to cover these possible Santa’s risks. PI insurance will cover Santa and his businesses against negligence claims from clients or customers. Negligence claims can be costly, and don’t think you can pay lawyers with candy or hot chocolate. Therefore insurance will pay for all his legal, compensation and settlement costs.

Elf Work Injuries

Elves are the hardest-working employees in the world. They love their jobs and perform with excellent efficiency. According to Buddy the Elf, each elf makes around 1000 toys daily. Making various toys that include stitching, electrics and construction can be risky. An elf could easily suffer a work injury.

elf Work injury

Work injuries are part of Santa’s risks, as Mr Claus is required to cover and compensate for work injuries– no matter how big or small. He must pay for the medical bill, salary while recovering and compensation.

Santa must purchase employee compensation (EC) insurance to cover work injuries. The insurance will cover the cost of the medical bill, salary and compensation. EC insurance allows Santa to send his elves to the best elf hospital and get the best treatment. He makes them work all year round; it is the least he can do.

Sick Reindeers

Santa’s reindeers are magical and help him through the big day by flying him and his sleigh around. Although they are also like his pets, he cares for them all year round with carrots and constant love. He would do anything for his nine reindeers, Dasher, Dancer, Prancer, Vixen, Comet, Cupid, Donner, Blitzen, and Rudolph.


Like any pet, even reindeers need medical attention and regular vet visits. Vet visits can be costly, especially for nine big pets. A reindeer not feeling well is one of Santa’s risks, especially near the big day. He wants and needs them to be healthy and happy.

Santa should consider pet insurance to help cover the cost of caring for his pet reindeers. Pet insurance will reimburse the cost of consultation, medical treatments and surgeries. Even Santa wants his pets to be in the best condition.

Santa’s Workshop Risks

Santa workshop is a huge factory full of tools, toys, employees and machines. It is the location where all the toys are made, packaged and sorted.  The workshop is crucial to Christmas, and Santa must make sure the workshop is protected.


Fires, snow storms or breakdowns could easily damage the workshop and the equipment. This is one of the most concerning Santa’s risks, as, without the workshop, there be no toys for Christmas. Santa is also responsible if any third party is injured in the workshop.

Property all risk and public liability insurance is perfect for these serious risks. Property all-risk will cover the repair or replacement of damaged workshop and equipment. Public liability insurance will cover if a third party sues Santa’s business, alleging that the workshop caused them bodily injury or property damage. These risks could occur any time of the year; insurance will ensure it doesn’t affect Christmas.

Defective Toys

Elves are creating a vast range of toys and products to satisfy kids and complete their list. From bikes to electronic action figures. Kids excitingly wait till Christmas day to open their gifts from Santa and play with them all week. However, what if a toy accidentally injures the kid or causes property damage to the parent’s home?

Christmas toys

Parents may sue Santa for product defects if a toy causes injuries or property damage. Product defect is part of Santa’s risks, as he and the workshop will be liable. He may have to make a trip to recall his products or send his elves. 

Product defect claims are extremely costly and ruin Santa’s reputation.  Hence Santa will have to make sure he purchases product liability insurance. The insurance will cover legal costs and damages for the business due to product defect claims. He may also want to get a product recall extension, which will cover all charges related to recalling the defective toys. The two insurances can help Santa and the elves a lot in case of product mistakes.

Does Your Business Face Santa’s Risks?

Hopefully, these insurance are bought in time to cover Santa’s risks, or he may face a large financial loss.

These insurance should be bought by any company or professional that provides similar services, especially during Christmas. For example, you may be a toy shop or delivery service. The insurance can save you from many unwanted claims and losses.

We hope you don’t face any risks like ‘Santa’risks’ in your business during the holiday season. However, to be safe, you should ensure your different policies are updated and ready for next year.


Disclaimer– This article has been written for entertainment purposes, and the information about Santa and Santa’s risks are not facts. Although the insurances are real and you can learn more on our website.


To learn more about the insurances in Hong Kong & Asia, contact Red Asia Insurance.