Royal & SunAlliance (R&SA) has warned British businesses against ignoring the increasing trend of work-place stress claims.
At present stress claims amount to approximately 2.5% of EL disease claims, but R&SA pointed to a threefold rise in stress claims between 1998 and 2002 as an indication of a growing problem.
It said figures had suggested that over 13 million working days are lost to stress, depression and anxiety each year, costing approximately £3.7bn.
R&SA also said the distinction between EL and employment practices liability (EPL) claims was becoming increasingly blurred.
EPL covers claims arising from racial, sexual or religious discrimination, harassment and unfair dismissal, but recent cases awarding compensation for psychiatric illness arising from such discrimination have raised the issue of whether the illness constitutes actual bodily injury, creating some confusion as to whether EL or EPL insurers should be responsible for a claim, said R&SA.
The insurer has recommended that businesses ask themselves a series of questions to ascertain whether they are doing enough to protect themselves and their employees from stress.
R&SA said companies with a poor approach to general risk management were also much more likely to take stress less seriously.
Liability underwriting manager Helen Hatchek, said: “By tackling the issues at source employers can help defuse what can be an expensive and damaging problem in the workplace, which could even end up in court.
“Active management to reduce these issues, and prevent them turning into claims will ultimately lead to a healthier workforce, a higher performing organisation and more stable insurance premiums.
