Please note: the following 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.
If you're a small business owner, workplace safety isn’t just another box to check, it’s a game-changer for your bottom line. A single injury can disrupt operations, create financial burdens, and impact team morale. Yet, many small businesses are still taking a reactive approach to safety instead of getting ahead of potential risks.
Our 2025 Safety Survey paints a clear picture: 75% of small businesses (defined as businesses with 500 or fewer employees) experienced workplace injuries in the past year, with nearly half admitting they had to improvise safety measures due to a lack of proper equipment. Even more concerning? Half of those injuries were reported to be preventable.
This year’s report highlights some surprising trends: like the rising impact of mental health on workplace safety, the growing role of AI in preventing accidents, and why employee resistance to safety measures is costing businesses more than they realize. Let’s dive into the key takeaways and what they mean for your small business.
Every year, workplace injuries take a toll on small businesses, and the numbers from this report prove it stating 50% of all workplace injuries were reported as preventable. Based on survey findings, on average, 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. In addition, costly operational downtime expenses could be reduced by preventing lost business and employee work days.
The most common types of preventable workplace injuries include:
One of the biggest red flags in the report is that 49% of businesses admit to improvising safety measures because they don’t have the right equipment. That’s a dangerous, and costly, habit. Companies that cut corners on safety may end up with higher accident related costs, more lost workdays, and a bigger financial burden overall.
Taking proactive safety measures isn’t just about avoiding accidents, it’s about saving your business money and keeping your team productive.
AI is no longer just a tool for big corporations. 81% of small businesses are open to AI adoption, and 44% are already using it to improve safety and efficiency.
From predictive analytics that anticipate risks to AI-driven telematics that monitor driver behavior, technology is reshaping how businesses approach safety. Automated safety training, AI-powered surveillance, and real-time risk detection are helping companies stay ahead of accidents instead of reacting to them.
With 64% of business leaders saying AI will improve worker safety in the next 5 years, AI will take on a critical role in safety, so adopting these tools now can put businesses ahead of the curve.
In 2025, mental health has officially become one of the biggest workplace safety concerns. It’s no longer just about physical hazards. Stress, burnout, and mental health-related injuries now account for 22% of all workplace injuries, surpassing traditional risks like slips and falls.
Yet, while 46% of businesses recognize mental health as their biggest safety risk, only 52% have formal mental health safety protocols in place. That gap is costing companies in lost productivity, increased absenteeism, and higher workplace safety incidents.
Addressing mental health isn’t just about offering resources. It’s about creating a culture where employees feel safe and supported. The companies that get this right will see fewer injuries, higher engagement, and stronger overall performance.
For companies that rely on commercial vehicles, auto-related incidents are a serious financial burden. The average out of pocket financial burden per commercial vehicle accident is $5,725, and that figure jumps to nearly $16,000 annually when insurance and legal fees come into play.
Despite these risks, 20% of businesses still don’t monitor driver behavior, even though 36% cite speeding, distractions, and fatigue as major safety concerns.Tips to Improve Commercial Auto Safety
With 62% of businesses already leveraging telematics, those who fail to adopt this technology may soon fall behind.
What is one of the most frustrating challenges businesses face when improving workplace safety? Employee resistance. In fact, 42% of businesses cite it as their biggest obstacle, with employees either forgetting or believing safety measures aren’t necessary.
“Many accidents are preventable, but only if employees understand that safety isn’t about checking boxes—it’s about protecting themselves and their coworkers.” — Carla Woodard, SVP of Claims at Pie Insurance.
Workplace injuries aren’t just a safety issue, they’re a financial one. On average, small businesses lose four employee workdays and three full business days each year due to accidents.
Even more concerning is 32% of small businesses reported annual costs of over $20,000 on injury-related expenses, which can severely strain small business budgets.
Given these risks, businesses are increasingly recognizing the importance of workers’ compensation insurance. Surveyed businesses rated its importance at 6.9 out of 10, with mid-sized companies (11-500 employees) rating it even higher at 7.3.
The 2025 State of Workplace Safety Report makes one thing clear: businesses that take workplace safety seriously will have a competitive edge.
By implementing proactive mental health support, investing in the right equipment, leveraging AI, and ensuring employees follow safety protocols, small businesses can reduce injuries, lower costs, and create a more productive workforce.
Ready to protect your team and reduce workplace risks? Explore Pie Insurance’s tailored workers’ compensation and commercial auto solutions today.
Thanks for reading! This content is intended for educational purposes only and 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.
Any mention of cost throughout the report is based on answers from respondents being asked how much their business spent on workers’ compensation or commercial auto insurance, medical expenses, and/or legal costs related to workplace or commercial vehicle accidents in the past year.
