The financial and legal landscape for physical therapy professionals is becoming increasingly complex and costly, according to a newly released industry analysis. Professional liability claim costs for physical therapy professionals have risen significantly, underscoring growing operational risks related to manual therapy, patient monitoring, injuries, practice-level claims, and licensure defense issues.
The findings are detailed in the Physical Therapy Professional Liability Claim Report: 5th Edition, which was recently published by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—in partnership with CNA. According to the report, the average total incurred cost for professional liability claims involving physical therapy professionals has increased by 20.3% to reach $162,174. Furthermore, the share of claims closing in the higher-severity indemnity range of $250,000 to $749,999 has also grown, rising from 9.3% to 13.7% since the previous 2020 dataset.
This comprehensive report sheds light on the wide-ranging professional liability exposures currently facing physical therapists, physical therapist assistants, and physical therapy practices. Alongside financial metrics, the publication provides detailed claim trends, licensure defense matters, case studies, in-depth analysis, and practical risk management insights designed to help practitioners navigate an increasingly litigious environment.
Industry leaders emphasize that while the physical therapy profession remains deeply dedicated to patient care, the external pressures and legal liabilities surrounding clinical practice are shifting. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted the changing dynamics of the clinical environment. Physical therapy professionals are consistently committed to delivering safe and effective care that helps patients function at their best, Flynn observed, but they are doing so in an environment marked by increasing complexity and evolving risks. She explained that the newly released report was specifically designed to provide physical therapists, physical therapist assistants, and practice owners with the necessary insights and strategies to help minimize their unique professional liability exposures.
The report’s broader findings draw from a rigorous analysis of closed professional liability claims handled over a multi-year period. Specifically, the general analysis encompasses 497 closed professional liability claims involving physical therapists, physical therapist assistants, physical therapy practices, and other healthcare practitioners providing services as employees of an insured physical therapy practice. The dataset captures claims that resulted in an indemnity payment of $10,000 or greater between January 1, 2020, and December 31, 2025, referred to in the study as the 2026 dataset.
By examining the root causes and common denominators of these legal actions, insurance and risk management experts hope to empower practitioners to adopt safer clinical workflows. Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized the value of proactive risk reduction. 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, Miller stated. She added that the primary aim of the report is to raise awareness of current trends and claim drivers in order to enhance risk management knowledge and ultimately support safer care for both physical therapy professionals and the patients they serve.
The publication of the fifth edition report is part of a broader, ongoing educational initiative by CNA and HPSO to support the physical therapy community. To build upon the core findings of the report, HPSO has announced plans to release a series of seven specialized Physical Therapist Spotlights over the coming months. These upcoming spotlights will feature direct links to educational resources that highlight risk control best practices across several critical operational and clinical areas, including proper documentation standards, strategies for effective licensure defense, and the safe integration of emerging healthcare technology into daily practice.
The complete Physical Therapy Professional Liability Claim Report: 5th Edition is currently available for download online through the official HPSO resource portal at https://www.hpso.com/ptclaimreport, where practitioners and practice owners can review the full data tables, legal analyses, and individual case studies subject to the report’s published limitations and considerations.
