The financial stakes within the physical therapy profession have reached a new milestone, driven by a significant escalation in professional liability claim costs. According to the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, the average total incurred for professional liability claims involving physical therapy professionals has surged by 20.3%, reaching $162,174. This upward trajectory underscores an increasingly complex legal and regulatory landscape for practitioners, clinic owners, and support staff alike.
Published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, the comprehensive report sheds light on the evolving risk exposures facing the physical therapy sector. Beyond the sharp rise in average payouts, the data highlights shifts in the severity of claims. Most notably, the share of claims closing in the higher-tier indemnity range of $250,000 to $749,999 has risen from 9.3% to 13.7% since the previous dataset analyzed in 2020.
The report serves as an exhaustive examination of professional liability exposures, incorporating detailed claim trends, licensure defense matters, case studies, statistical analysis, and essential risk management insights tailored specifically for physical therapists, physical therapist assistants, and practice owners.
Navigating an Increasingly Complex Practicing Environment
As healthcare delivery continues to adapt to technological advancements, shifting patient demographics, and changing regulatory demands, the daily practice of physical rehabilitation has grown increasingly multifaceted. Industry leaders emphasize that while practitioners remain deeply dedicated to providing high-quality, patient-centered care, the external environment introduces mounting challenges that can inadvertently elevate legal vulnerabilities.
“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 published report was intentionally designed to equip physical therapists, physical therapist assistants, and practice owners with the necessary insights and actionable strategies to help minimize their unique professional liability exposures.
The report’s findings point to several prominent risk areas that frequently trigger legal challenges and administrative scrutiny. Among these are clinical exposures related to manual therapy techniques, patient monitoring protocols, and accidental injuries occurring during treatment sessions. Furthermore, practice-level claims and licensure defense matters have emerged as critical areas requiring heightened vigilance from both individual clinicians and administrative leadership.
Proactive Risk Management and Industry Response
Mitigating these rising costs requires a shift toward proactive risk awareness across clinical settings. Industry experts argue that by identifying the underlying drivers of litigation and administrative complaints, healthcare providers can implement safeguards that protect both their patients and their professional standing.
“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. She emphasized that the primary goal of the report is to elevate awareness regarding prevailing industry trends and claim drivers, thereby enhancing risk management knowledge and fostering safer care environments for physical therapy professionals and the patients they serve.
To further support practitioners in these efforts, HPSO has announced plans to roll out an educational series over the coming months. This initiative will feature a series of seven Physical Therapist Spotlights, each accompanied by direct links to resources highlighting risk control best practices. Key topics slated for coverage in this series include meticulous documentation standards, strategies for effective licensure defense, and the safe integration of emerging healthcare technology into daily clinical workflows.
Methodology and Scope of the Dataset
The insights published in the Physical Therapy Professional Liability Claim Report: 5th Edition represent an ongoing, long-term commitment by CNA and HPSO to the education and professional protection of the physical therapy community.
The general analysis compiled within the report is derived from a rigorous examination of 497 closed professional liability claims. This dataset encompasses cases involving physical therapists, physical therapist assistants, physical therapy practices, and other healthcare practitioners who provided services as employees of an insured physical therapy practice. To ensure the relevance and statistical significance of the findings, the analysis focuses strictly on claims closed between January 1, 2020, and December 31, 2025, that resulted in an indemnity payment of $10,000 or greater, referred to collectively as the 2026 dataset, subject to specific reporting limitations and considerations.
Physical therapy professionals, practice managers, and legal compliance officers seeking a deeper understanding of these liability trends can access the complete findings. The full Physical Therapy Professional Liability Claim Report: 5th Edition is available for download directly through the official HPSO website at https://www.hpso.com/ptclaimreport.
