The financial and legal landscape for physical therapy professionals has grown increasingly hazardous, according to a newly released comprehensive industry analysis. A fresh report published by Healthcare Providers Service Organization (HPSO) and CNA indicates that professional liability claim costs for physical therapy professionals have escalated significantly, bringing renewed attention to vulnerabilities surrounding manual therapy, patient monitoring, physical injuries, practice-level claims, and licensure defense matters.
Published jointly by HPSO—which operates as part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, the Physical Therapy Professional Liability Claim Report: 5th Edition examines the shifting dynamics of professional liability exposures. The findings underscore a challenging operational environment for physical therapists, physical therapist assistants, and practice owners alike, offering detailed case studies, legal analysis, and vital risk management insights designed to help navigate modern clinical risks.
According to the data compiled in the latest edition, the average total incurred cost for professional liability claims involving physical therapy professionals has increased by 20.3% to reach $162,174. Furthermore, the severity of these legal challenges is compounding: the share of claims closing within the substantial indemnity range of $250,000 to $749,999 has risen from 9.3% to 13.7% since the previous 2020 dataset. These figures reflect an upward trajectory in both the frequency of severe financial payouts and the underlying complexity of managing high-stakes patient care disputes.
The publication arrives at a time when the healthcare sector continues to grapple with post-pandemic operational shifts, heightened regulatory oversight, and greater public scrutiny regarding patient safety outcomes. Industry leaders emphasize that while practitioners remain dedicated to delivering high standards of care, the legal and professional ecosystem surrounding them has become markedly more precarious.
"Physical therapy professionals are committed to delivering safe, effective care that helps patients function at their best; however, they practice in an environment marked by increasing complexity and evolving risks," said Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization. "This report is designed to provide physical therapists, physical therapist assistants, and practice owners with insights and strategies to help minimize their unique professional liability exposures."
The comprehensive analysis encompasses 497 closed professional liability claims evaluated within what is designated as the 2026 dataset. This specific pool includes cases involving physical therapists, physical therapist assistants, physical therapy practices, and other healthcare practitioners who provided services as employees of an insured physical therapy facility. To maintain a rigorous focus on significant legal events, the dataset strictly evaluates claims that closed between January 1, 2020, and December 31, 2025, and resulted in an indemnity payment of $10,000 or greater, subject to the various limitations and structural considerations outlined in the complete report.
By tracking these trends over a multi-year period, the report provides a clearer picture of how clinical procedures and administrative workflows intersect with legal vulnerabilities. Practitioners face scrutiny not only regarding hands-on treatment methodologies, such as manual therapy techniques, but also concerning patient supervision, the management of secondary injuries occurring during rehabilitation sessions, broader practice-level liabilities, and the escalating need to defend professional licenses against administrative complaints.
Risk management specialists point out that many of these claims are preventable or manageable through heightened awareness of recurring liability drivers. Understanding the precise mechanisms that trigger patient litigation or regulatory investigations allows clinics and individual providers to implement targeted safeguards long before disputes reach the courtroom.
"By understanding the factors that lead to claims, physical therapy professionals and practices can take proactive steps to help reduce risk and lower the chance of litigation," said Crystal Miller, RPLU, CPCU, underwriting director at CNA. "This report aims to raise awareness of trends and claim drivers to enhance risk management knowledge and support safer care for physical therapy professionals and their patients."
To extend the reach and practical application of the report’s findings, HPSO has announced plans to roll out a series of seven distinct Physical Therapist Spotlights over the coming months. These specialized releases will feature direct links to educational resources emphasizing risk control best practices. Key areas of focus within the upcoming spotlight series will include clinical documentation standards, strategies for effective licensure defense, and the safe integration of emerging technologies into modern physical therapy practice.
The publication of the 5th edition reinforces a long-standing commitment by both CNA and HPSO to ongoing professional education and risk mitigation within the allied health community. By providing empirical data on settlement trends, indemnity ranges, and claim characteristics, the organizations aim to equip practitioners with the knowledge required to safeguard both their patients’ wellbeing and their own professional standing.
Interested practitioners, practice administrators, and legal professionals seeking a deeper examination of the data can access the complete findings, analytical breakdowns, and related resources by visiting the official HPSO portal dedicated to the release at hpso.com/ptclaimreport.
