The cost of directors' and officers' cover has more than tripled in the past three years, according to research by Aon.

The cost of directors' and officers' (D&O) cover has more than tripled in the past three years, according to research by Aon.

The broker's study of the D&O premiums paid by 55 corporate customers, found the average premium paid per £1m of cover provided increased from £3,025 in 2000 to £10,470 by the end of 2002.

Aon professional risks director Adam Codrington said companies operating in the US have been badly affected because of the litigious nature of US corporate culture.

He said: "Evidence suggests that the cost of D&O cover will continue to increase but not at the rates we have experienced over the past three years. However, the situation remains fragile.

"If any major European companies were to be hit with serious litigation or class actions, the cost of cover could spiral."

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