Mental Health: The Silent — and Growing — Risk in Small Businesses

I’ve been in business for about 2.5 years now, and the vast majority of my clients have been medium- to large-sized companies. That’s where most of the investment in workplace mental-health training is happening. But a recent Inc.com article, “People Working at Small Businesses Worry Most About Mental Health. Here’s How to Help,” really caught my attention — because it highlights the small businesses that often get overlooked.

The conversation around “workplace safety” is shifting. For many small businesses, the biggest risks aren’t ladders, forklifts, or physical hazards — they’re mental-health challenges. A recent report from Pie Insurance shows a striking shift:

• 32% of small-business employees say mental health is their top workplace safety concern — outranking slips or falls (20%).

• 62% worry about anxiety or depression stemming from work.

• 63% cite burnout or lack of motivation.

• Over 50% report insomnia or sleep disruption.

• More than 1 in 3 say work-related stress is affecting their personal relationships.

Yet when it comes to addressing these issues, many employers may be overestimating their readiness. 91% believe they can address mental-health risks — but only 62% of employees agree. And just 30% say they’ve seen any formal mental-health protections in place.

Why This Matters for Insurance and Risk Partners

For those of you working in insurance and risk, this is exactly where you can make a measurable difference. You’re uniquely positioned to help shift safety culture for your small-business clients — especially those who don’t have internal HR teams or the resources to coordinate training on their own.

Consider offering or sponsoring evidence-based trainings like Mental Health First Aid or QPR Suicide Prevention for small clients who may otherwise struggle to gather a quorum. You can be the bridge that brings essential mental-health prevention strategies directly to them.

Mental Health Is a Risk Issue

Mental-health challenges influence far more than individual well-being. They directly affect:

• Productivity

• Turnover

• Absenteeism

• Engagement

• Overall business performance

By continuing to define safety only as a physical issue, many organizations are missing the most urgent risk of all.

How Small Businesses Can Move From Awareness to Action

Here are key steps businesses — and their insurance partners — can take to begin closing the gap:

• Expand the definition of “workplace safety.” Treat mental health with the same priority as physical hazards.

• Implement formal policies and protections. Go beyond good intentions by establishing clear protocols, resources, and training.

• Promote open communication and psychological safety. Reduce stigma and make help accessible.

• Monitor, measure, and respond. Track well-being data and act proactively.

• Partner for quicker results. Work with experts like Hammes Homestead & Consulting to design and deliver strategies that support both people and business outcomes.

Small businesses deserve the same level of mental-health support and prevention as large employers — sometimes more. And insurers are in a powerful position to help make that a reality.