The financial stakes within the physical therapy profession have escalated significantly over recent years, driven by rising claim costs, increasingly complex patient care environments, and mounting legal and regulatory 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 surged by 20.3% to reach $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 sheds light on the evolving risk landscape confronting physical therapists, physical therapist assistants, and practice owners. Beyond documenting overall cost inflation, the analysis examines the primary liability exposures facing the sector, including manual therapy complications, patient monitoring challenges, treatment-related injuries, practice-level claims, and complex licensure defense matters.
The findings underscore a distinct shift toward higher-severity litigation within the specialty. Most notably, the share of claims closing within the substantial $250,000 to $749,999 indemnity range has expanded notably, moving from 9.3% in the previous dataset to 13.7% in the current evaluation. This upward migration in payout sizes reflects not only the rising costs associated with medical care and legal defense, but also the expanding scope of practice and the heightened vulnerabilities associated with advanced therapeutic interventions.
Industry experts emphasize that while physical therapy professionals remain deeply dedicated to helping patients achieve optimal function and safe recovery, the modern practice environment is fraught with hidden and escalating operational hazards. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that physical therapy practitioners operate in an atmosphere defined by increasing complexity and evolving risk factors. She explained that the newly published report was intentionally designed to equip physical therapists, physical therapist assistants, and practice owners with the critical insights and practical strategies needed to minimize their unique professional liability exposures.
The overarching analysis presented in the 5th edition of the report is built upon a robust examination of 497 closed professional liability claims. These cases involved physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided services as employees of insured physical therapy practices. To ensure data relevance and focus on material liability events, the dataset specifically captures claims that closed between January 1, 2020, and December 31, 2025, and resulted in an indemnity payment of $10,000 or greater, establishing what the organizations reference as the 2026 dataset.
By analyzing these closed claims, the report aims to demystify the underlying triggers of litigation and provide actionable intelligence to the broader healthcare community. Crystal Miller, RPLU, CPCU, underwriting director at CNA, pointed out that a thorough understanding of the specific factors that instigate claims empowers physical therapy professionals and practice leadership to take proactive measures. According to Miller, these preventive steps can significantly mitigate risk and reduce the probability of costly litigation, ultimately raising awareness of prevailing claim drivers to enhance risk management knowledge and support safer, higher-quality care for patients.
To further amplify the practical utility of the report, HPSO has announced plans to roll out a targeted educational initiative in the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights. These installments will feature direct links to specialized resources designed to highlight risk control best practices across critical operational areas, including proper clinical documentation, navigating licensure defense proceedings, and managing the emerging legal and ethical implications of new technology within rehabilitation settings.
The release of the Physical Therapy Professional Liability Claim Report: 5th Edition represents a continuation of the longstanding commitment by CNA and HPSO to provide ongoing education, risk guidance, and professional support to the physical therapy community. As legal and regulatory pressures continue to reshape the healthcare landscape, industry stakeholders hope that the comprehensive data and risk mitigation strategies outlined in the report will serve as an essential roadmap for safeguarding both practitioners and the patients they serve.
For physical therapy professionals, practice owners, and risk management specialists seeking a deeper dive into the data, case studies, and specialized analysis, the complete report is publicly available for download by visiting the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
