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Cancellation of TV Movie Release Covers Production and Advertising Expenses
A major network produced a TV movie about an airline disaster and had already scheduled the airtime for its premier. The scheduling, however, coincided with a series of natural and manmade disasters that were in the news. Since airing the movie as scheduled could have been perceived as being in "bad taste," the network sought to insure production and advertising expenses that would be incurred if the airing of the movie had to be postponed.
Marsh assessed the scope of the situation and, to cover all possible contingencies, described it as a "national/international disaster." We then defined the parameters of an airline disaster and negotiated with the carrier to cover situations which, in our client's opinion, were of such a severe nature that they would be considered in bad taste if they were to air. For the purposes of this coverage, a national or international airline disaster must engender a news story that makes national news on at least two of the seven major networks--all of which were named in the policy.
The policy's insuring agreement was customized to ensure that the policy would indemnify the client for their net ascertained loss of incurred expenses and/or monetary commitments, made prior to the loss, relating to the production and advertising of the movie.
Marsh's client benefited from this solution since, in the event of a postponement of the airing of the movie due to a covered loss, the policy would also pay the additional production and advertising costs (extra expenses) to re-market the movie for future release (subject to the limit of liability).
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