As attempts to block fast-track extradition to the US fail, Aon has urged UK businesses to make sure they are adequately protected.
The broker has warned every senior executive to ensure that the cover their companies have in place is the most appropriate for them in order to avoid a potentially huge personal financial loss.
The warning comes following research carried out by Aon into the cover available within D&O policies in the London market regarding the issue of extradition. This was prompted by the extradition of the NatWest three.
The research surveyed major carriers of D&O policy asking them which of their policies would cover extradition in a similar situation. Aon said it was surprised that many carriers did not know how to respond to the enquiry.
The broker said as there was very little clarity about what ‘extradition costs' included this needed to be clearly defined before policies were purchased so that every director is aware of exactly what assets are and are not protected.
D&O litigation costs often run into millions of dollars even before extradition costs are considered. That is also before the cost of lost earnings is considered which isn't covered in policies.
At the time of extradition it was estimated that the NatWest three would be obliged to spend $1.5m each fighting their case in the US.
