Insurers have no reason to fear a teacher's successful £47,000 claim for stress-related damages will open the floodgates to further payouts – if they adopt appropriate safeguards.

That is the confident assertion made by insurers Iron Trades, publishers of a workplace guide on the controversial issue.

However, the insurer stressed employers should not be complacent. They should instead be prepared to recognise symptoms of stress among their employees and manage the risk.

"Employers have a simple choice. Respond today to this growing threat or reap the benefit of escalating premiums tomorrow," the company said.

Workplace stress has been highlighted by a string of recent cases involving public sector workers, such as Birmingham housing officer Beverly Lancaster, earlier this year.

Iron Trades said the private sector appeared to have managed the issue better.

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