The financial and professional risks facing physical therapy practitioners have escalated significantly over recent years, driven by soaring liability claim costs, complex clinical environments, and mounting legal pressures. According to the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, the average total incurred cost for professional liability claims involving physical therapy professionals has jumped by 20.3% to reach $162,174.
The comprehensive study, published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, sheds light on the shifting landscape of professional liability exposures. Beyond the sharp rise in average claim totals, the report reveals a troubling trend in high-severity payouts: the share of claims closing in the substantial $250,000 to $749,999 indemnity range has increased from 9.3% to 13.7% when compared against the previous 2020 dataset.
As physical therapists, physical therapist assistants, and practice owners navigate an increasingly demanding healthcare ecosystem, industry experts emphasize that these figures underscore a growing need for heightened risk management awareness. The report captures crucial data regarding professional liability exposures, claim trends, licensure defense matters, detailed case studies, and actionable risk management insights tailored specifically to the rehabilitation sector.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that the modern practice environment presents unique hurdles for clinicians dedicated to patient recovery. While physical therapy professionals remain deeply committed to delivering safe, effective care that helps patients function at their best, they increasingly practice in an environment marked by growing complexity and evolving risks. Flynn explained that the newly published report was intentionally designed to provide physical therapists, physical therapist assistants, and practice owners with the deep insights and strategic perspectives necessary to help minimize their unique professional liability exposures.
The analysis underpinning the report is robust, drawing from a vast dataset of historical claims handled within the industry. 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 data collection window spans claims closed between January 1, 2020, and December 31, 2025—referred to as the 2026 dataset—that resulted in an indemnity payment of $10,000 or greater, subject to the report’s outlined limitations and considerations.
Within this data, the report highlights specific operational and clinical risk drivers that continue to challenge practitioners. Key areas of concern identified in the publication include growing professional vulnerabilities related to manual therapy techniques, patient monitoring protocols, injury management, practice-level claims, and complex licensure defense proceedings. As regulatory standards tighten and patient expectations evolve, these clinical touchpoints have increasingly become focal points for legal scrutiny and potential litigation.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized that understanding the root causes of litigation is the most effective way for practitioners to safeguard their careers and practices. By carefully analyzing the specific factors that lead to claims, physical therapy professionals and practices can take proactive steps to help reduce risk and lower the overall chance of facing costly litigation. Miller added that the overarching goal of the report is to raise vital awareness of emerging trends and primary claim drivers, thereby enhancing risk management knowledge across the profession and ultimately supporting safer, higher-quality care for physical therapy professionals and their patients alike.
To help practitioners translate these complex findings into everyday clinical safety measures, HPSO plans to roll out a series of educational resources in the coming months. Specifically, the organization will release a series of seven distinct Physical Therapist Spotlights. These forthcoming spotlights will include direct links to specialized resources designed to highlight risk control best practices across critical operational areas, including proper clinical documentation standards, strategies for effective licensure defense, and the safe integration of emerging technologies within modern physical therapy practices.
The publication of the Physical Therapy Professional Liability Claim Report: 5th Edition represents a continued, long-term commitment by CNA and HPSO to educating the physical therapy community and empowering practitioners with the empirical data they need to navigate an increasingly litigious healthcare environment.
Physical therapists, physical therapist assistants, practice owners, and healthcare administrators seeking a deeper understanding of these evolving liabilities can access the complete findings and analyses. The full report is currently available for download by visiting the dedicated resource portal at https://www.hpso.com/ptclaimreport.
