Viacom presses claim for 9/11 business interruption: argues public-interest role in preempting advertising. (Insurance).(Viacom may seek insurance relief related to terrorist attacks)

Broadcasting & Cable, January, 2003 by Trigoboff, Dan

In an effort to recover revenue lost following the 9/11 attacks, Viacom is claiming to its insurers that its broadcast properties--CBS and Infinity stations--had no choice under its public-interest. responsibilities in preempting hundreds of millions of dollars of advertising. According to sources, Viacom makes the argument that, while there was clearly no government order to remain on the air sans commercials--which many radio and TV entities did for days following the attacks-doing so was nonetheless mandated by its public-interest obligation as well as by the belief that running commercials at that time risked alienating the public.

The company declined to comment on the issue. Some insurers as well as media lawyers contacted called the...

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