Lloyd’s Offers ‘Grinch’ Coverage

After 319 years in the business, Lloyd’s has probably insured just about everything. So it’s not surprising that this Christmas the venerable institution is offering “the first and only insurance policy in the world to families in the event that the Grinch steals Christmas.” In effect Lloyd’s event cancellation policy will indemnify policyholders for all of their losses if the Grinch finds a way to stop Christmas from coming.

Danny Burns, an underwriter at Lloyd’s Talbot syndicate, said the risk was grave and the policy was long overdue, as follows:

“For too many years this peril’s been real;
The Grinch has been scheming and plotting to steal,” he said.
“It’s not just the Whos that need to prepare;
This Grinch risk should give all families a scare.
Millions of good little girls and boys;
Could lose their whole Christmas and all of their toys.”

Lloyd’s specified that its “policy provides coverage in the event that Christmas is cancelled, postponed, interrupted, curtailed or relocated due to activities by the Grinch. It also covers additional costs or charges the assured pays to try to avoid or diminish the loss.”

Burns, who must be related to Scotland’s most famous poet, noted that he believes families need to put risk management at the heart of their holiday season if they are to deal effectively with potential Grinch losses:

“Why should families have their whole holiday spoiled;
When we here at Lloyd’s can have that Grinch foiled,” he said.

As usual the devil’s in the details (i.e. the policy wording). Lloyd’s said that to “claim under the policy, policyholders will be required to demonstrate that nothing was left on Christmas morning but some hooks and some wire. Additionally a claim will not be valid if there was one speck of food left in the house, unless the crumb was even too small for a mouse.”

Burns said he was pleased to create the policy to protect families, and that developing specialist innovative policies is at the heart of what Lloyd’s does. He added:

“For every family who wishes to FEAST! FEAST! FEAST! FEAST!
Remember that Lloyd’s will insure their roast beast.”

Source: Lloyd’s – www.lloyds.com (with an assist from Dr. Seuss)