Seventy-five percent of small businesses in the U.S. reported workplace injuries last year, costing more than $20,000 in injury-related expenses, according to Pie Insurance's “2025 State of Workplace Safety Report," which found that half of these injuries were reported as being preventable if businesses implemented the right precautions and preventative measures.

Meanwhile, mental health is emerging as a key safety concern, surging to the most common small business injury at 22%. Slips, trips and falls are the second most common at 20%, followed by cuts, lacerations and punctures at 18% and overexertion and repetitive strain injuries (13%).

Nearly half (45%) of small businesses view mental health as the greatest safety risk and 39% believe underestimating mental health risk is the most dangerous workplace safety issue today. However, while the vast majority—91%—say they are confident in their ability to manage mental health risk, only 52% of businesses have formal safety protocols in place, the report found.

The survey also asked which injuries could be prevented. The most preventable injuries were slips, trips and falls (59%), cuts and lacerations (47%), overexertion and repetitive strain injuries (42%), and mental health-related injuries (31%). If small businesses could prevent half of these workplace injuries, the annual out-of-pocket savings could be more than $10,000, with operational downtime losses—such as lost business and employees' workdays—also being reduced.

Yet, 49% of businesses admitted to improvising their safety measures due to a lack of proper equipment, increasing the risk of accidents and revealing a gap in workplace safety, the report found. Further, employee resistance to using safety measures is a major barrier to improving safety, with 42% of businesses citing it as a problem. Businesses say the top reason employees don't follow safety protocols is because they don't think it's necessary, at 36%, followed by employees forgetting to follow the safety measures, at 32%.

Driving also poses dangers for businesses, with 42% of small businesses with commercial vehicles reporting auto-related accidents. The accidents cost an average of $5,725 in out-of-pocket expenses last year.

To curb losses, businesses are turning to technology to provide solutions. Four in 5 small businesses surveyed are open to incorporating artificial (AI) into their daily operations to improve safety and enhance productivity. Forty-four percent of businesses surveyed actively use AI, with 97% reporting increased operational efficiency and 73% experiencing improved workplace safety. 

"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, senior vice president 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."

Olivia Overman is IA content editor.