Standard Answers: Covering the Santa Clause
Jann Browning, CPCU, ARM
On a recent trip to the mall, I met a Santa Claus I really liked. He told me that besides working in the mall, he also does private parties. I'm thinking about hiring him for a family Christmas party, but I'm concerned about the insurance implications if anything happens while he is in my home. I suspect my homeowners insurance wouldn't cover him, because he would be an employee, not a guest. Should I ask him for a certificate of insurance? What kind of insurance should he have? Maybe I should just have Uncle Joe play Santa instead.
Happy Holidays!
'Tis the season for Santa Claus to be making guest appearances at many home Christmas parties. You are wise to think about the insurance implications. Many people don't give insurance issues a second thought until it is too late.
The insurance implications of having Uncle Joe play Santa are different from those resulting from hiring a Santa Claus.
If Uncle Joe is a guest in your home who is dressed up as Santa, and he accidentally sets his beard on fire bending over a Christmas candle, his injuries (up to your limit for Part F, Medical Payments) would be covered under your homeowners policy, as would any property damage that resulted. His performance would be considered incidental to his being a guest, as opposed to being a paid performer.
Hiring a Santa would present a different scenario. As you mention, as an independent contractor, Santa would not be covered under your homeowners policy for any injury to himself or injury he caused to your guests, nor would he be covered under your policy for damage to your property or that of your guests.
If Santa is injured while performing in your home, ideally, he would be covered by workers compensation. A Santa who works as such for only a few weeks most likely wouldn't invest in a workers compensation policy, though. As sole proprietor of his Santa business, he would be allowed but not required to buy workers compensation coverage in Massachusetts. Even if you lived in New Hampshire, which requires an endorsement to the homeowners policy to provide workers compensation to domestic employees, Santa would not qualify, as his performance as Santa could hardly fit the definition of a residence employee under the policy.
Santa could cover himself for any bodily injuries or property damage he caused to others under a commercial general liability policy (CGL). Such a policy would also cover personal injuries, such as libel or slander, that occur before, during, or after the performance. A group policy issued to Performers of the U.S. offers coverage with $3 million limits to Santas, as well as other performers, for a reasonable price. (For more information, visit www.specialtyinsuranceagency.com).
Bear in mind that some hazards Santas face, such as accusations of child molestation, are excluded by the CGL. Professional Santas who attend Santa schools are trained to avoid such hazards (by always keeping their hands in full view, for instance.) Your vicarious liability for Santa's molestation would also be excluded by your unendorsed homeowner's policy. It appears that very few homeowners insurers would be willing to endorse such coverage onto its policy.
When hiring a Santa Claus, you should look for qualifications such as graduation from a recognized Santa Claus school as well as insurance coverage to protect you and him from any unforeseen events while he is in your home.
Thanks to Doug Dodge, insurance agent and professional Santa Claus, for help with this article. Jann Browning is editor of The John Liner Review, a publication of Standard Publishing Corporation.
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