Professional liability claim costs for physical therapy professionals have escalated significantly, driven by mounting risks associated with manual therapy, patient monitoring, complex injuries, practice-level claims, and licensure defense matters. According to a newly released industry analysis, the financial stakes for practitioners and clinic owners have reached unprecedented levels, prompting calls for enhanced risk management and heightened vigilance across the sector.
The findings are detailed in the Physical Therapy Professional Liability Claim Report: 5th Edition, 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 underscores a shifting operational and legal landscape for physical therapists, physical therapist assistants, and rehabilitation practices, offering an in-depth look at emerging claim trends, closed-claim analyses, and actionable risk management insights designed to protect both practitioners and their patients.
At the core of the report’s financial findings is a sharp increase in the severity of professional liability claims. The average total incurred cost for professional liability claims involving physical therapy professionals has surged by 20.3%, reaching $162,174 per claim. This upward trajectory in overall expenses is further compounded by a noticeable shift in the distribution of high-value payouts. Specifically, the share of claims closing within the substantial indemnity range of $250,000 to $749,999 has risen from 9.3% to 13.7% when compared against the previous dataset from 2020. This upward migration indicates that when legal challenges and malpractice allegations arise, they are increasingly carrying heavier financial penalties and more complex legal battles.
Industry leaders attribute these rising costs to an environment of growing clinical complexity and evolving operational risks. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that while practitioners remain deeply dedicated to delivering safe and effective care that maximizes patient function, the modern healthcare ecosystem introduces multifaceted challenges.
"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," Flynn said. "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 publication of the fifth edition comes at a crucial juncture for the physical therapy profession, as clinics navigate post-pandemic care delivery models, shifts in patient demographics, and an increased reliance on advanced therapeutic techniques. The report’s general analysis is built upon a robust sample size of 497 closed professional liability claims. These cases involve physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided services as employees of an insured physical therapy practice between January 1, 2020, and December 31, 2025. To qualify for inclusion in this dataset, each reviewed claim had to have resulted in an indemnity payment of $10,000 or greater.
By examining these historical claims, the report seeks to illuminate the precise operational vulnerabilities and clinical pitfalls that most frequently lead to litigation or administrative scrutiny. Underwriting experts emphasize that the goal of releasing such granular data is not merely to highlight financial exposure, but to empower clinical teams with the knowledge necessary to prevent adverse events before they escalate into formal legal disputes.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized the preventive value of the data contained within the new publication. By closely examining the primary drivers behind professional liability claims, practitioners can systematically evaluate their daily workflows, communication strategies, and patient management protocols.
"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 said. "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."
In addition to publishing the extensive report, HPSO is planning further educational initiatives to support the physical therapy community. In the coming months, the organization will release a curated series of seven Physical Therapist Spotlights. These forthcoming resources will feature direct links to practical tools and educational materials highlighting risk control best practices. Key areas of focus for the spotlight series will include crucial operational topics such as comprehensive patient documentation, effective navigation of licensure defense matters, and the integration of emerging technologies into clinical practice.
The release of the Physical Therapy Professional Liability Claim Report: 5th Edition underscores a long-standing, shared commitment by CNA and HPSO to ongoing professional education and risk mitigation within the allied health sector. By translating complex claims data into clear, actionable insights, the organizations aim to foster a culture of safety that benefits both healthcare providers and the millions of patients who rely on physical therapy services for their recovery and rehabilitation.
Physical therapists, physical therapist assistants, practice owners, and other interested healthcare stakeholders can access and download the complete report by visiting the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
