financial restatement exclusion
A financial restatment exclusion in directors and officers (D&O) liability policies precludes coverage for claims brought in conjunction with a corporation's restatement of its financial data.
financial restatement exclusion
A financial restatment exclusion in directors and officers (D&O) liability policies precludes coverage for claims brought in conjunction with a corporation's restatement of its financial data.
Additional Information
The rationale for this exclusion is that when a restatement is necessary, it is a strong indicator that either information was intentionally omitted from the original financial statement or data was willfully falsified. In either instance, the need for a restatement is normally caused by conduct far beyond mere negligence on the part of the organization's directors and officers.
