I've never heard of insurance paying for SEC settlements. Any specific examples in mind that make you say it's "very likely" a large chunk will be covered by insurance?
E&OE Insurance, and it's why the language of the settlement is so distorted.
The company simply made a clerical representational error, against which insurance can be purchased. Per the language of the settlement there was no fraud, hence the insurance is not nullified. How much of the settlement gets recovered depends on how much PWE was responsible for it, and their mitigation efforts before and after the event.
https://en.wikipedia.org/wiki/E%26OE
https://financial-dictionary.thefreedictionary.com/E%26OE
SD
In other words, you don’t know what you are talking about.