12 Days of Santa’s Insurance – Day 11
Even though Santa takes every precaution to ensure the toys his workshop produces are sturdy and safe, he’d gain a little peace of mind with product liability insurance.
It’s December 26, and Santa has changed out of his trademark red suit into swim trunks as he and Mrs. Claus celebrate another year of hard work with a little R&R far away from the snowy North Pole. As he debates whether to snorkel or sunbathe, Santa receives some sobering news: The workshop quality control team has learned this year’s popular giant teddy bear is ripping apart at the seams in homes all over the world.
Suddenly, “Jingle Bells” blares and Santa leaps out of bed. He realizes the teddy bear catastrophe was just a bad dream. But his sense of unease lingers, prompting him to wonder how he might be able to cover his risk in the event his nightmare were to come true. A product liability policy is just the ticket!
Product Liability Insurance protects businesses from acquiring financial and legal risk due to the quality of its sold goods or products. It typically covers claims due to design defects, production or manufacturing failings, and marketing flaws.
Of course, Santa would never purposely manufacture and distribute faulty toys. But given that December is crunch time at the North Pole, product liability coverage would keep Santa and his operation protected in case of a sleepy elf mishap.