The financial and legal landscape for physical therapy professionals is shifting significantly, driven by mounting claim costs, evolving clinical risks, and an increasingly complex healthcare environment. 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 surged by 20.3%, reaching $162,174.
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 examines the professional liability exposures currently facing physical therapists, physical therapist assistants, and physical therapy practices. Beyond financial metrics, the publication provides deep dives into prevailing claim trends, licensure defense matters, detailed case studies, expert analysis, and actionable risk management insights tailored to the rehabilitation sector.
The findings arrive at a time when practitioners are navigating unprecedented operational hurdles. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that while the profession remains deeply dedicated to patient recovery and functional independence, the backdrop against which care is delivered has fundamentally changed.
"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 Flynn. She emphasized that the newly published report was intentionally designed to equip physical therapists, physical therapist assistants, and practice owners with the necessary insights and strategies to help minimize their unique professional liability exposures.
A closer examination of the data underscores the severity of these emerging financial risks. Not only has the average total incurred cost climbed past the $160,000 threshold, but the severity of individual claims is also shifting upward. Most notably, the share of claims closing within the substantial $250,000 to $749,999 indemnity range has expanded from 9.3% to 13.7% since the publication of the previous dataset in 2020. This upward drift in high-severity payouts reflects a broader trend across medical malpractice and professional liability sectors, where legal defense costs, settlements, and jury awards continue to escalate.
Industry leaders point out that understanding the root causes of these claims is essential for mitigation. Crystal Miller, RPLU, CPCU, underwriting director at CNA, stressed that awareness is the first line of defense for clinicians seeking to protect their licenses and livelihoods.
"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 Miller. She added that the primary objective of the report is to raise awareness of prevailing trends and prominent claim drivers, thereby enhancing risk management knowledge and supporting safer, higher-quality care for physical therapy professionals and the patients who rely on their expertise.
The data analyzed in the 5th edition report is drawn from a robust evaluation of 497 closed professional liability claims. This dataset encompasses claims involving physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided services as employees of an insured physical therapy practice. To ensure relevance to modern clinical environments, the analysis focuses strictly on claims that closed between January 1, 2020, and December 31, 2025, and resulted in an indemnity payment of $10,000 or greater. This body of information forms what the publishers designate as the 2026 dataset, offering a contemporary view of litigation patterns in the post-pandemic healthcare era.
The report highlights that professional liability risks in physical therapy are multifaceted. Key areas of vulnerability identified across the claims analysis include risks related to manual therapy techniques, patient monitoring protocols, patient injuries occurring during treatment or facility navigation, broader practice-level claims, and complex licensure defense proceedings. As regulatory scrutiny tightens and patient expectations shift, clinicians find themselves facing vulnerabilities that extend beyond direct clinical execution into administrative, documentation, and supervisory domains.
To help practitioners translate these findings into practical safeguards, HPSO has announced plans to roll out an educational initiative in the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights. These installments will include direct links to specialized resources designed to highlight risk control best practices. Key focal points of the upcoming spotlight series will encompass critical operational areas such as comprehensive clinical documentation, effective strategies for licensure defense, and the careful navigation of emerging technologies in rehabilitation settings.
The ongoing collaboration between CNA and HPSO in producing the Physical Therapy Professional Liability Claim Report underscores a long-standing institutional commitment to continuous education and professional risk reduction within the rehabilitation community. By illuminating the specific triggers, trends, and financial realities associated with professional liability claims, the organizations aim to foster a culture of proactive risk management that ultimately benefits both practitioners and the public.
Physical therapists, practice owners, and risk management professionals seeking a deeper understanding of these developments can access the complete findings. The Physical Therapy Professional Liability Claim Report: 5th Edition is available for public download and review on the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
