Argo’s 12 Days of Santa’s Insurance: Ocean Cargo Policy

When Santa’s sleigh hits turbulence, there’s a chance a toy or two hundred could take a tumble. With an ocean cargo policy from Argo Group, Santa’s toys are covered in transit – whether over land, sea or air.

Day Six: Ocean Cargo Policy

After working hard to make sure children wake up to toys under their Christmas tree, the last thing Santa wants is to leave playthings unprotected. By taking out an ocean cargo policy, Santa can be sure his toys are covered from the time they are loaded onto his sleigh until they arrive at their final destination.

Santa stuffs his bag with a wide assortment of presents, from simple dolls and teddy bears to sophisticated tech toys. Dave Higley, senior vice president and head of E&S property and inland marine for Argo Group, recommended that Santa buy coverage for the priciest gifts in his bag.

“Santa doesn’t care about insuring stuffed animals,” Higley said. “He can make more of them and already has a bunch in stock.”

A cargo policy premium is calculated on the value of the goods covered.

No single insurance company could cover the value of all the toys Santa delivers, Higley noted. Argo would offer $25 million of coverage for every trip the jolly man in the red suit makes each Christmas Eve. So if he made 20 trips to and from the North Pole on his delivery route, Santa’s premium would be $125,000 per trip, for a total annual premium of $2.5 million.

Buckle up, Santa.

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