Pie Insurance 2025 State of Workplace Safety Report

Annual report highlights the financial toll of workplace injuries, rising mental health risks, and how AI-driven safety solutions can help small businesses reduce costs and protect workers

Denver, CO - April 2nd, 2025 —Pie Insurance, an insurtech specializing in commercial insurance for small businesses, today released its 2025 State of Workplace Safety Report offering new insights into the evolving safety landscape for small businesses across the United States. This year’s report analyzes data from over 1,000 small business owners and decision-makers, uncovering how businesses are responding to shifts in safety trends including rising mental health challenges, preventable injuries, employee resistance, and the accelerating adoption of AI-powered safety technology.

The Cost of Inaction: Workplace Injuries Are a Growing Financial Burden

Workplace injuries remain a significant challenge, with 75% of small businesses reporting incidents in the past year—half of which were reported as preventable. 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 Pie’s 2025 Workplace Safety Report:

 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.

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%).

"Workplace safety isn’t just about preventing physical injuries—it’s essential to both employee well-being and a business’s long-term success,” said Carla Woodard, SVP of Claims at Pie Insurance. “Our 2025 data makes one thing clear: safety isn’t just a compliance checkbox—it’s a competitive advantage. 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.”

Download the full 2025 State of Workplace Safety Report and explore additional insights at https://www.pieinsurance.com/safety-survey.

About the Report/Methodology

Pie’s 2025 State of Workplace Safety Report is based on a 15-minute online survey commissioned by Pie Insurance and conducted by YouGov PLC. The survey collected responses from 1,018 US small business owners and decision-makers responsible for commercial insurance and workers’ compensation coverage at companies with 2-500 employees. The survey was fielded from January 9 to January 18, 2025. 

All survey related content was developed for educational purposes only and covers a wide variety of general workplace safety concerns and considerations, some not relevant to workers’ compensation or commercial auto coverage. This content does not imply coverage under workers’ compensation or other insurance offered through Pie Insurance Services, Inc. Please consult an agent or attorney for any questions regarding applicability of insurance coverage in all circumstances.

About Pie Insurance

Pie Insurance is leveraging technology to transform how small businesses buy and experience commercial insurance, with the goal of making it affordable and as easy as pie. Pie's intense focus on granular, sophisticated pricing, and data-driven customer segmentation enables Pie to match price with risk accurately across a broad spectrum of small business types, which allows Pie to offer more affordable insurance to small business owners. Since 2017, Pie has received over $615M in funding and partnered with over 4,000 agencies nationwide.