Mad man admits it hurts (7)
I believe the answer is:
touched
'mad' is the definition.
(thesaurus)
'man admits it hurts' is the wordplay.
'man' becomes 'ted' (Ted is a man's name).
'admits' means one lot of letters goes inside another.
'it hurts' becomes 'ouch' (both might be said when in pain).
'ted' placed around 'ouch' is 'TOUCHED'.
(Other definitions for touched that I've seen before include "a bit mad" , "Came into contact with" , "begged a loan" , "Made contact" , "Felt" .)