In the classic holiday movie Elf, Buddy realizes the Santa visiting children in a New York City department store is a fake and his moral outrage skyrockets faster than a caffeinated Comet. The ensuing brawl with the called-out Imposter Claus sends store decorations and displays crashing, while parents and wish-list-bearing kids gape from the sidelines.
While it’s unlikely many stores will encounter an elf-vs.-Santa throwdown, fights are just one exposure that could put a serious dent in the bottom line during the busy holiday retail season. Other risks include fire, water damage from sprinklers or broken pipes, theft and vandalism.
Peak season endorsement
Businesses can plan for the increased exposures they face during the holidays by considering the addition of a peak season endorsement to their property coverage, says Andy Hendrix, senior vice president, head of U.S. Property.
“Peak season inventory is an exposure inherent in the holidays that probably insureds don’t necessarily account for,” Hendrix says. “Department stores and commercial exposures carry larger inventory values during the holiday season. Are they adequately increasing their lines of insurance to account for those exposures?”