What does Financial Restatement Exclusion mean? Read on to discover the definition & meaning of the term Financial Restatement Exclusion - to help you better understand the language used in insurance policies.
Financial Restatement Exclusion
An exclusion in directors and officers (D&O) liability policies that precludes coverage for claims brought in conjunction with a corporation's restatement of its financial data. 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.
We hope the you have a better understanding of the meaning of Financial Restatement Exclusion.