Pie Insurance, an insurtech specializing in commercial insurance for small businesses, has released its 2025 State of Workplace Safety report, which found mental health to be the top safety concern for small businesses.

The report analyzed data from more than 1,000 small business owners and decision-makers with 2-500 employees regarding safety trends, including rising mental health challenges, preventable injuries, employee resistance, and the accelerating adoption of AI-powered safety technology.

While physical injuries such as slips, trips, and falls remain common at 20%, mental health-related workplace injuries have surged to 22%, according to the report.

Forty-six percent of small businesses identified mental health as their greatest workplace safety risk. Thirty-nine percent said underestimating mental health risks is the most dangerous workplace safety trend today.

However, many businesses may be underestimating their preparedness as 91% express confidence in managing mental health risks but only 52% have formal safety protocols in place, according to the report.

Forty-nine percent said they have improvised safety measures due to a lack of proper equipment. Pie Insurance found those who improvised more frequently also reported higher average lost workdays, both business and employee days, and higher annual out-of-pocket costs overall.

Seventy-one percent of businesses said they plan to introduce or expand mental health safety measures this year.

Workplace injuries remain a significant challenge, with 75% of small businesses reporting incidents in the past year, half of which were reported as preventable, according to the report.

Eighteen percent of respondents reported employee injuries by cuts, lacerations, and punctures, and 13% due to overexertion and repetitive strain.

More than 30% of small businesses reported spending over $20,000 on injury-related costs in the past year. On average, injuries resulted in four lost employee workdays and three full business days of disruption annually, according to the report.

In addition, 42% of businesses with commercial vehicles reported auto-related incidents in the past year, each costing an average of $5,725 per accident. Pie Insurance concluded, based on survey findings, if small businesses could prevent half of workplace injuries, the average annual out-of-pocket savings (workers’ compensation, medical expenses, and/or legal costs) could reach up to $10,000 or more.

Technology is playing a growing role in workplace safety as well. Eighty-one percent of small businesses are open to adopting AI tools to enhance safety, and 44% already have. Seventy-three percent reported improvements in workplace safety outcomes as a result.

Despite the clear benefits of workplace safety initiatives, many small businesses face pushback from employees when implementing new safety protocols, according to Pie Insurance. Forty-two percent of business owners cite employee resistance as a barrier to adopting new safety measures.

Businesses said the most common reason (36%) was employees not thinking it was necessary. Thirty-two percent said they forget to follow new safety measures.

“Workplace safety isn’t just about preventing physical injuries,” said Carla Woodard, SVP of Claims at Pie Insurance, in a press release. “It’s essential to both employee well-being and a business’s long-term success. Our 2025 data makes one thing clear: safety isn’t just a compliance checkbox — it’s a competitive advantage… The right approach to safety can create stronger, more resilient businesses.”

The Occupational Safety and Health Administration (OSHA) provides auto body repair and refinish safety resources on its website including standards and solutions to hazards.

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