The financial and professional risks facing physical therapists, physical therapist assistants, and rehabilitation practice owners have climbed significantly over recent years, according to newly released industry data. A comprehensive new report indicates that the average total incurred cost for professional liability claims involving physical therapy professionals has risen by 20.3% to $162,174. Furthermore, the share of claims concluding in higher indemnity brackets—specifically the $250,000 to $749,999 range—has expanded notably from 9.3% to 13.7% when compared against previous dataset measurements.
These findings form the core of the newly published Physical Therapy Professional Liability Claim Report: 5th Edition. The publication is a collaborative effort between Healthcare Providers Service Organization (HPSO), which operates as part of the Healthcare division of Aon Affinity, the affinity business of Aon plc, and CNA, a major commercial property and casualty insurance company. The comprehensive report offers an in-depth examination of the evolving professional liability exposures confronting the physical therapy sector, detailing critical claim trends, licensure defense matters, informative case studies, professional analysis, and targeted risk management insights designed for practitioners navigating today’s complex medical-legal landscape.
The modern healthcare environment presents unique challenges for rehabilitation specialists who strive daily to help patients regain mobility, manage chronic pain, and recover from debilitating injuries or surgical procedures. Industry leaders emphasize that while clinicians maintain an unwavering commitment to patient safety and high standards of care, the broader operational environment has become markedly more intricate.
“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. She noted that the newly released publication was specifically engineered to equip physical therapists, physical therapist assistants, and independent practice owners with actionable insights and strategic tools designed to minimize their unique professional liability exposures.
The report highlights a multifaceted array of risk drivers that contribute to the rising financial severity of professional liability claims within the specialty. Among the primary risk areas identified in the analysis are exposures related to manual therapy techniques, patient monitoring protocols, patient injuries occurring during treatment sessions, practice-level claims, and the growing necessity and frequency of licensure defense proceedings. As the healthcare sector absorbs these trends, insurance and risk management professionals stress the vital importance of proactive legal and operational awareness.
“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. Miller explained that the publication’s primary objective is to elevate awareness regarding prevailing industry trends and underlying claim drivers. By doing so, the report aims to enhance risk management knowledge across the profession, ultimately supporting safer care environments for both physical therapy professionals and the patients they serve.
To further amplify the practical takeaways of the 5th Edition report, HPSO has announced plans to roll out an extensive educational initiative over the coming months. The organization will release a curated series of seven specialized resources known as Physical Therapist Spotlights. These targeted releases will include direct links to educational materials highlighting risk control best practices across critical operational domains, including medical record documentation standards, strategies for effective licensure defense, and the safe integration of emerging technologies within clinical practice.
The data foundational to the Physical Therapy Professional Liability Claim Report: 5th Edition represents a collaborative, ongoing commitment by CNA and HPSO to clinical education and professional risk mitigation within the rehabilitation sector. The general analysis compiled within the report is derived from a rigorous examination of 497 closed professional liability claims. This specific dataset encompasses claims involving physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided professional services in the capacity of employees of an insured physical therapy practice. The analyzed claims all reached a final resolution between January 1, 2020, and December 31, 2025, and resulted in an indemnity payment of $10,000 or greater, establishing the parameters for what is referenced as the 2026 dataset.
As the physical therapy profession continues to adapt to shifts in patient demographics, treatment modalities, and regulatory expectations, reports of this nature serve as an essential resource for clinicians seeking to safeguard their practices. Practitioners, practice owners, and healthcare administrators interested in reviewing the complete findings, statistical breakdowns, and detailed case analyses can access the comprehensive document directly through the HPSO digital resource portal at https://www.hpso.com/ptclaimreport.
