The financial stakes in the physical therapy profession have climbed to unprecedented heights, driven by a sharp escalation in the cost and severity of professional liability claims. 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.
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 study offers an in-depth examination of the evolving professional liability exposures confronting physical therapy professionals and practices today. The report provides critical insight into current claim trends, licensure defense matters, detailed case studies, specialized risk analysis, and actionable risk management strategies tailored to the rehabilitation sector.
The findings illuminate a shifting landscape where practitioners operate amid growing operational complexity and increasingly sophisticated risks. Industry experts point to specific areas of vulnerability, noting that issues related to manual therapy, patient monitoring, physical injuries sustained during treatment, practice-level claims, and licensure defense proceedings are fueling the upward pressure on liability expenses.
Perhaps most indicative of this financial escalation is the growing severity of individual legal matters. The report reveals that the share of claims closing within the substantial indemnity range of $250,000 to $749,999 has risen notably, moving from 9.3% in the previous dataset up to 13.7%. This migration toward higher payout brackets underscores the financial perils that modern physical therapy providers face when clinical outcomes result in severe patient grievances or formal legal action.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, emphasized the dedication of practitioners while acknowledging the increasingly hazardous legal environment in which they operate. Flynn noted that physical therapy professionals are deeply committed to delivering safe, effective care that helps patients function at their best. However, she explained, they now practice in an environment marked by increasing complexity and evolving risks. She added that the new report was specifically designed to provide physical therapists, physical therapist assistants, and practice owners with the insights and strategies necessary to help minimize their unique professional liability exposures.
The publication arrives at a crucial juncture for the rehabilitation industry, as providers balance the demands of patient volume with the rigorous documentation and clinical standards required to mitigate legal risk. By analyzing hundreds of closed claims, the report seeks to demystify the primary drivers of litigation and administrative scrutiny.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, echoed these sentiments regarding the preventive value of the data. Miller stated that 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. She emphasized that the primary goal of the report is to raise awareness of prevailing trends and claim drivers to enhance risk management knowledge and support safer care for both physical therapy professionals and the patients they serve.
The underlying research for the 5th edition of the report is built upon a robust sample of data. 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 dataset captures claims that concluded between January 1, 2020, and December 31, 2025, and specifically focuses on matters that resulted in an indemnity payment of $10,000 or greater.
To build upon the release of the main report and extend its educational reach, HPSO has announced plans to roll out a specialized series of resources in the coming months. The organization will release a series of seven Physical Therapist Spotlights, complete with direct links to targeted educational assets. These forthcoming spotlights will highlight risk control best practices across several critical operational areas, including clinical documentation standards, strategies for effective licensure defense, and the safe integration of emerging technologies into clinical practice.
This ongoing educational initiative underscores a shared, long-term commitment by CNA and HPSO to support the physical therapy community through rigorous data analysis, risk awareness, and preventive education. Industry stakeholders, practice owners, and individual clinicians looking to better understand their risk profile and safeguard their practices can access the full findings. The complete Physical Therapy Professional Liability Claim Report: 5th Edition is currently available for download online through the official HPSO resource portal at hpso.com/ptclaimreport.
