Santa Insurance

There's no specific license you need to perform as Santa Claus at malls and other venues. However, there are some basic recommendations and requirements for your business:

• Business license. Every business owner typically needs a business license to operate legally.
• Proof of insurance. Malls and hiring companies may require proof of liability insurance to cover bodily injuries and property damage involving your business. They'll typically ask to be included in your policy as an additional insured.
• Background checks. Santas often need to pass a background check to work for a hiring company at malls and other locations where children are present.
• Training and certifications. Taking a class and getting certified as a Santa displays professionalism and helps attract clients.

Find more info about becoming a professional Santa through the IBRBS (formerly known as the International Brotherhood of Real Bearded Santas) or the Worldwide Santa Claus Network.

Homeowner's insurance doesn't usually cover business property or potential liabilities related to your Santa business, and a hiring company or mall may provide only limited coverage. That's why you may want to carry your own commercial coverage.

Business insurance covers business property damage and theft in a few different circumstances:

• You accidentally damage someone else's property. If Mrs. Claus knocks over a venue's light stand or an elf spills hot chocolate on a customer's smartphone, your general liability policy would help pay to repair or replace the broken item. It'll also pay for legal expenses if your business is sued over the accident.
• Property at your business location is damaged or stolen. Commercial property insurance covers storms, fires, burglaries, and similar incidents that impact a performing Santa's office or its contents.
• Mobile business property is damaged or stolen. For sleighs, North Pole signs, costumes, and other items that travel to malls and other venues, you'll need tools and equipment coverage, also called inland marine insurance. It covers business property in transit, used at venues, and stored off-site.

Santa Claus performers can purchase general liability insurance and commercial property insurance together in a business owner's policy (BOP), which costs less than purchasing these policies separately. You can customize your BOP with endorsements for inland marine insurance and additional coverages to better protect your business.

Even for a one-day event, Santa Claus liability insurance is essential due to the high cost of an accident or lawsuit. It's often required by venues and entities that hire seasonal Santas.

Santa Claus performers can purchase one-day special event insurance or short-term liability insurance to cover third-party accidents and demonstrate responsibility to potential clients. For instance, you could buy event insurance for a private holiday party, or seasonal insurance for a series of mall appearances during the holiday season.

However, there are several reasons to opt for year-round coverage instead:

• It's expensive to stop and start coverage. Performers who cancel their policies may see increased premiums or have difficulty restarting coverage, as it's a red flag for insurers.
• It may cost more in the long run. Going without insurance leaves you exposed to costly risks. For example, a storage unit could catch fire and destroy your Santa costume and props while you're uninsured.
• Some policies won't provide coverage. Occurrence-based policies like general liability continue to cover incidents that happened while you were insured, but that's not the case for claims-made policies like professional liability insurance, which must be kept active to provide protection.

Santa Claus holiday businesses often invest in the following insurance products as part of a strong risk management strategy:

• Commercial property insurance covers your office and its contents in the event of a fire, storm, or burglary.
• Inland marine coverage insures business property that travels to venues, such as reindeer props, costumes, lighting, and audio equipment. It also covers items in transit and stored off-site.
• Special event insurance provides liability protection for one-day events, such as a Santa appearance at a private Christmas party.

Our insurance agents can help you find specialty insurance for unique risks and answer any questions you might have about coverage.

An entertainer who performs occasionally as Santa won't have to pay a lot for insurance. Here are several ways to save money on insurance:

• Shop around. Insurance companies often charge different rates for the same coverage. Fill out Insureon's easy online application to compare insurance quotes before buying a policy.
• Choose less expensive coverage options. Policies with lower limits and higher deductibles cost less. Make sure the limits are sufficient to cover a claim, and that you can easily afford to pay the deductible.
• Pay the full annual premium. You can choose between monthly and annual payments on Santa insurance policies, with a discount usually offered when you pay the full annual amount.
• Skip optional coverages. The right policy covers your risks, without offering coverage you don't need. For example, you can save money on car insurance by skipping comprehensive coverage, which covers physical damage from falling branches, collisions with deer, and other uncommon incidents.
• Reduce your risks. A focus on workplace safety, such as proper maintenance and reduction of clutter, helps reduce the chance of a costly accident and a subsequent claim that hikes up your premium.

Remember, the cheapest policy isn't necessarily the best choice. An accident could bankrupt your holiday business without the right insurance protection.