Aon today issued a warning about the potential cost of ignoring environmental risks to companies when purchasing D&O policies.

While fines have been moderate up until now, the introduction of new regulations and accounting standards has meant financially robust companies with insufficient cover run the risk of becoming insolvent, said Aon.

Directors and non-executives could face fines, disqualification and even prison, warned the company.

“Clean-up costs can far exceed the market value of a site. We have seen an accident with a litre of chemical that resulted in a £16 million cost for damages.”

“Businesses simply cannot afford to continue to ignore this issue,” says Dr. Marcel Steward, Director of Environmental Consulting and Solutions with Aon.

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