Here comes Santa Claus, right down Santa Claus Lane. He’s got a bag that’s filled with toys, but does he have coverage for those he employs?

The North Pole is very dynamic — Santa Claus has a personal home, reindeer, a toy factory and a sleigh for business use. Like many business owners, he needs to look at a variety of insurance coverages for all aspects of his life.
Because of the animal exposure from the reindeer, the Clauses need to put their residence on a farm policy, or a home policy with an endorsement that extends to the barn and animals.

A business policy would insure the toy factory, while the sleigh would be added to the business auto policy. Any additional drivers also need to be taken into account. If Mrs. Claus or any elves want to drive the sleigh, they would need their driving records checked first, and, if acceptable, added to the policy.

Santa’s agent may strongly recommend umbrella insurance, which are additional liability limits that extend over the home or business limits. In the unlikely event that Santa is sued, the lawsuit could extend from Santa to jeopardize the toy factory and any related businesses. An umbrella provides an extra layer of liability protection in the event of a loss or lawsuit.

Smart Business spoke with Ryan Clugston, a client advisor at SeibertKeck, about how Santa Claus can stay safe this holiday season with the proper insurance coverage.

How should the toy factory be covered?

Santa’s toy factory is a unique risk. Because 100 percent of its inventory is scheduled for delivery on one night, he needs peak season insurance. Peak season insurance automatically provides you with a specified percentage increase in insurance coverage during peak inventory periods when you insure your inventory for its average monthly value. We all know that although the elves have 12 months to make the toys, they really pick up the pace in November and December, significantly increasing the number of toys stored at the factory. Having peak season insurance allows Santa to increase the coverage for the toys for a couple of months while inventory is at its highest.

Santa also should talk to his agent to make sure his business policy has equipment breakdown coverage, in case any of the toy-making machines were to break, and business interruption coverage, which would help Santa if there was a covered loss and he was unable to work in the factory.

What are some additional coverages Santa may need?

An important coverage for Santa as he delivers all the gifts would be cargo coverage. Cargo coverage provides insurance for the goods, in this case gifts as they are in transit on the sleigh, until delivery. For Santa this could include any gifts that fall from the sleigh, are delivered to the wrong child or damaged en route.

Since Santa and his elves make all the toys at the North Pole, another coverage Santa should get is products liability. Products liability coverage is necessary because the manufacturer or maker of the products is held responsible for the injuries those products cause. If a toy were faulty or incorrectly made by an elf, Santa’s factory would be liable if any injury occurred to a child.

Any other tips for Santa — or other insurees — as the year winds down?

Take the time to:

  • Put multiple insurance policies with the same carrier. This can be beneficial in the event of a claim and save on premiums.

  • Review your personal and business insurance with your agent annually.

  • Contact your agent two to three months before your busy season. They will review your risk, make sure coverage is in place and allow you to focus on your business when the rush hits.

It’s critical to have a trusted insurance agent who can advise you how to best bundle your insurance for convenience and premium savings, without sacrificing necessary coverage, to have a happy holiday season and successful year following.

Ryan Clugston is a client advisor at SeibertKeck, Best Hoovler McTeague. Reach him at (614) 246-7475 or

Insights Business Insurance is brought to you by SeibertKeck

Published in Columbus
Tuesday, 24 September 2013 00:00

SeibertKeck: Insurance marketing 101

Do you hire multiple agents for every renewal and shop for the lowest price? Do you spend countless hours each year reviewing the same business information with several agents? If you answered yes, you may be making simple insurance marketing mistakes.

“Business owners need to have a strategic plan for marketing insurance, part of the plan is a defined marketing and renewal process,” says Ryan Clugston, a client advisor at SeibertKeck.

Smart Business spoke with Clugston about common misperceptions regarding the insurance renewal process and how to make better use of your time and resources.

Why not purchase the policy with the lowest price?

Saving money may seem great, but it also could mean gaps in coverage. Every carrier’s policy differs in language and coverage offerings. The variables in the policy language and how the coverage is structured will greatly influence the cost of the policy. Sometimes the least costly policy has the right coverage, but not always.

Many times the least expensive policy has more constrictive language, including warranties that the insured must adhere to for coverage to respond in the event of a claim, such as having certificates of insurance for all subcontractors or that claims notifications have to be made within a specific time period for coverage to be provided. There are a number of other examples where a policy may restrict coverage. These can be removed or adjusted, for a charge, which would vastly improve the claims experience.

Always review the policy to make sure it is complete before switching based on price.

Should you shop insurance companies every year?

In the long run, businesses that shop their insurance every year looking to beat down their cost of insurance are doing themselves a disservice. When an underwriter sees the same submission to quote a business, year after year, from multiple agents, the underwriter will become less interested in quoting it. They assume that if they do write the insurance, they have a great opportunity to lose it the following year because it will be marketed again. It is beneficial to build a relationship with your agent and carrier; this allows them to get to know your business and business practices and can assist at the time of a claim or renewal.

Should you have multiple agents quote your insurance?

You should not use more than two agents to quote your insurance at any one time. When you have three or more agents involved in the quoting process, the amount of time the business owner and staff has to commit to answering underwriting questions, allowing time for loss control visits, etc., becomes overwhelming. By limiting yourself to two agencies to quote your insurance the process should be more manageable and effective. It is helpful to have a market selection between the agents, this helps streamline the quote process.

How can you find a knowledgeable agent?

Industry associations sometimes endorse an agency because of their familiarity with the industry. Sometimes the agency has a program specific to that industry as well.

Also, reach out to people you trust, such as your industry peers or another service provider like your banker, attorney, accountant or payroll provider.

Can I keep my current carrier, but change agents?

Business owners may wish to do a request for services (RFS) to determine who they want to represent their insurance needs. An RFS does not involve the marketing of your insurance. It is a process where the business owner may learn of the services and capabilities of multiple insurance agencies. Upon completion, the business owner will make their choice of agency and assign the policies to them to review, adjust, market and service.

Avoiding common misconceptions of the insurance renewal process can greatly reduce time, costs, and stress spent and created at your annual insurance renewal. Being strategic about selecting your agent and quoting your insurance can help you build a strong insurance team around your business, ensure the correct coverage is in place and provide competitive marketplace pricing.

Ryan Clugston is a client advisor at SeibertKeck, Best Hoovler McTeague. Reach him at (614) 246-7475 or

Insights Business Insurance is brought to you by SeibertKeck

Published in Columbus