Regulatory investigations and criminal penalties are the main concerns for directors and officers, according to a new survey by Willis Group and law firm Allen & Overy.

More than a quarter of respondents have experienced a claim or investigation involving a director, the study of 120 individuals from public and private groups shows.

Directors’ and officers’ (D&O) insurance should have clear policy terms and the cost of advice at an investigation’s early stages should be covered, they say.

The five greatest fears are  regulatory investigations and inquiries (highlighted by 89% of respondents); criminal and regulatory fines and penalties (69%); anti-corruption legislation (58%); securities and shareholder claims (51%); and the risk of being sued abroad (50%).

More than a third of respondents – mainly UK-based – were unaware of directors’ personal exposure to anti-trust enforcement.

Three in 10 did not realise directors face personal exposure to sanctions penalties.

High-ranking officers are under scrutiny “like never before”, according to Allen & Overy Counsel Andrew Barton.

“As regulatory authorities have responded to public and shareholder pressure in the wake of the credit crisis with more rules, heightened vigilance and tougher enforcement powers, corporate leaders find themselves exposed to even greater risks on a daily basis.”

D&O has “moved up the agenda” as a result, according to Francis Kean, Executive Director for Willis’ financial and executive risks practice.

“These mechanisms allow businesses to offer their leaders a degree of protection and assistance should they find themselves embroiled in civil, regulatory or criminal actions, and thereby help allay the fears of board members so they can focus on performing their key functions.”