Mental Health Tops Safety Concerns for Workers, Revealing Employer-Employee Disconnects

Mental health is now the leading workplace safety concern among small business employees, surpassing traditional hazards like equipment and environmental risks, according to new research from Pie Insurance. This shift signals a pressing need for insurance claims professionals to reevaluate how mental and behavioral health risks factor into safety protocols, incident reporting, and ultimately, claims severity and frequency.

The data shows a 22-point implementation gap between employer claims of mental health protocols and employee awareness of such measures, highlighting critical weaknesses in communication and safety culture. For claims adjusters, this disconnect can manifest as increased workplace stress-related claims, extended recovery times, and more complex assessments of causation and liability.

Other key findings with implications for the claims sector include a significant disparity in perceptions of training delivery—63% of employers believe they offer structured safety training, while only 29% of employees agree. Additionally, nearly one in five workers refrains from reporting safety issues due to fear of retaliation, introducing systemic risks that may go unreported until incidents escalate.

The research further notes that employees prefer practical, low-cost safety enhancements such as flexible schedules, mental health days, and involvement in decision-making. These preferences can shape the nature of workplace safety plans, influencing not only prevention but also how adjusters evaluate employer responsibility and the effectiveness of safety measures in place.

Claims professionals should be alert to these perception gaps and cultural challenges, which directly affect reporting behaviors and workplace morale—key factors in both the frequency and severity of claims. As mental health becomes a core element of workplace safety, adjusters will need to consider new frameworks for evaluating intangible hazards alongside traditional physical risks.