The 2025 State of Workplace Safety Report from Pie Insurance analyzed data from over 1,000 small business owners and found that 75% of small businesses reporting incidents in the past year—half of which were reported as preventable.
The Cost of Inaction: Workplace Injuries Are a Growing Financial Burden
The report highlights the financial toll that workplace incidents can take with more than 30% of small businesses reporting 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.
Commercial vehicle accidents are another costly workplace safety concern with 42% of businesses with commercial vehicles reporting auto-related incidents in the past year, each costing an average of $5,725 per accident.
However, 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.
Additional findings from the report:
Mental Health Emerges as a Top Safety Concern
- While physical injuries such as slips, trips, and falls remain common (20%), mental health-related workplace injuries have surged to 22%, surpassing them as a leading risk.
- Nearly half (46%) of small businesses identified mental health as their greatest workplace safety risk in 2025, with 39% saying that underestimating mental health risks is the most dangerous workplace safety trend today.
- However, many businesses may be underestimating their preparedness— 91% express confidence in managing mental health risks, but only 52% have formal safety protocols in place.
- Encouragingly, small businesses are taking steps to close this gap—71% plan to introduce or expand mental health safety measures in 2025.
Employee Resistance Slows Safety Progress
- Despite the clear benefits of workplace safety initiatives, many small businesses face pushback from employees when implementing new safety protocols—with 42% of business owners citing employee resistance as a barrier to adopting new safety measures.
- Businesses say the most common reason employees give for not following safety protocols is because they don’t think it’s necessary (36%) or they forget (32%).
AI-Powered Safety Gains Momentum
- Technology is playing a growing role in workplace safety, with 81% of small businesses open to adopting AI tools to enhance safety.
- 44% have already integrated AI-powered safety solutions, and 73% reported improvements in workplace safety outcomes.
“Our 2025 data makes one thing clear: safety isn’t just a compliance checkbox—it’s a competitive advantage," said Carla Woodard, senior vice, president of claims at Pie Insurance, in a statement."Businesses that invest in proactive safety measures, from basic accident prevention protocols and mental health support to AI-driven solutions, are not only protecting their teams but can also reduce costs and strengthen operations. The right approach to safety can create stronger, more resilient businesses.”