The cost of insurance to protect directors and officers against legal action has soared by up to 1,000%, according to Marsh.
Premiums for UK directors' and officers' (D&O) cover follow a recent hike in US premiums.
Foster added there was also a problem with employers' liability (EL) cover. The EL crisis has forced the government to launch reviews by both the Department for Work and Pensions and the Office of Fair Trading.
Toby Foster, chief executive of Marsh's UK retail operations, said: "Any UK company that has got off with a 100 per cent increase in D&O premiums should count themselves lucky - increases of 300 to 400 per cent have been much more the norm."
