The financial stakes within the physical therapy profession have risen sharply over the past several years, according to a comprehensive new industry analysis. Professional liability claim costs for physical therapy professionals have escalated significantly, driven by a complex web of emerging risks associated with manual therapy, patient monitoring, physical injuries, practice-level claims, and licensure defense matters.
The findings come from the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, a joint publication by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA. The report offers a deep dive into the evolving professional liability exposures confronting physical therapists, physical therapist assistants, and practice owners, providing detailed case studies, expert analysis, and actionable risk management insights designed to navigate today’s litigious healthcare landscape.
According to the data compiled in the 5th edition, the average total incurred cost for professional liability claims involving physical therapy professionals has increased by 20.3%, reaching $162,174. This substantial upward trajectory reflects not only general economic inflation and rising legal expenses but also an increase in severity for individual legal actions. Most notably, the share of claims closing in the higher indemnity ranges has expanded. Specifically, claims resulting in payouts within the $250,000 to $749,999 range climbed from 9.3% to 13.7% when compared against the previous dataset, underscoring a growing trend toward high-severity litigation within the specialty.
Industry leaders emphasize that these financial shifts occur against a backdrop of increasing operational complexity for practitioners who remain deeply dedicated to positive patient outcomes.
"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 Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization. "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 is built upon a rigorous review of historical data and closed legal files. The general analysis featured in the report 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 were closed between January 1, 2020, and December 31, 2025, and that resulted in an indemnity payment of $10,000 or greater. This body of data, referred to as the 2026 dataset, provides a contemporary snapshot of the primary drivers of liability and litigation facing the profession.
Risk management and underwriting experts stress that understanding the granular details behind these claims is essential for mitigation. By identifying the specific clinical scenarios, communication breakdowns, and administrative pitfalls that frequently lead to lawsuits, practitioners can institute safeguards to protect both their patients and their professional 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 Crystal Miller, RPLU, CPCU, underwriting director at CNA. "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."
Beyond the core findings detailed in the primary publication, HPSO is rolling out an extensive educational campaign to help practitioners translate the data into everyday clinical practice. In the coming months, HPSO will release a series of seven specialized installments known as Physical Therapist Spotlights. These resources will feature direct links to educational materials highlighting risk control best practices across critical operational areas, including comprehensive clinical documentation, effective licensure defense strategies, and the safe integration of emerging technologies into patient care workflows.
The release of the Physical Therapy Professional Liability Claim Report: 5th Edition underscores a continuous, long-term commitment by CNA and HPSO to education, risk awareness, and professional support for the physical therapy community. As healthcare delivery models continue to shift and patient expectations evolve, stakeholders hope that the insights provided in the report will serve as a vital resource for fostering safer clinical environments and reducing the incidence and severity of professional liability claims.
For physical therapists, assistants, practice owners, and healthcare administrators seeking a deeper understanding of the current risk landscape, the complete report is available for download on the HPSO website at https://www.hpso.com/ptclaimreport.
