Mental Health Claims Are on the Rise: What Small Business Owners Need to Know

Mental Health Claims Are on the Rise: What Small Business Owners Need to Know

Even years after the pandemic, mental health challenges continue to impact the Canadian workforce. Employees are more willing than ever to speak up about their struggles, which is a positive shift, but it also means that mental health claims are becoming the leading cause of disability leave. For small business owners, this is a trend that cannot be ignored.

Why Mental Health Claims Are Increasing

In 2025, mental health claims make up 35% of all disability cases and account for 70% of disability costs. Employees with these claims often take twice as long off work as those with other conditions. Several factors contribute to this trend:

• Changing attitudes: Younger workers, including Millennials and Gen Z, are more open to discussing mental health. Social stigma is fading, so employees are more likely to report issues rather than hide them.

• Chronic physical conditions: Long-term health problems often lead to mental health struggles. Pain, limited mobility, or a decline in daily enjoyment can significantly affect well-being.

• Financial stress: Rising costs of living, economic uncertainty, and concerns about retirement are major stressors for employees, especially younger workers.

• External pressures: Natural disasters and other uncontrollable events can have long-lasting mental health impacts, affecting employees’ ability to work.

The Role of Small Business Owners

As a small business owner, understanding these trends is critical. Offering disability coverage that includes mental health support can protect your team while reducing the risk of long-term absences. Preventative programs, like wellness initiatives, mental health resources, and flexible work arrangements, can help employees manage challenges before they require extended leave.

Why Group Benefits Are a Smart Solution

Comprehensive group benefits provide both physical and mental health support, offering employees access to counseling, therapy, and other mental health resources. They can also include preventative programs that help address issues early, keeping your team healthy, engaged, and productive.

Take action now. Protect your team and your business by exploring group benefits that include mental health coverage. Investing in your employees’ well-being is investing in the success and stability of your business. Contact us today to learn how simple it can be to provide meaningful support for your team.

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