The financial and operational pressures facing the physical therapy profession have intensified significantly over recent years, driven by a sharp escalation in professional liability claim costs, according to comprehensive new industry data.
A newly released professional liability study shows that the average total incurred cost for claims involving physical therapy professionals has risen by 20.3%, reaching $162,174. Published by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc, in collaboration with CNA—the Physical Therapy Professional Liability Claim Report: 5th Edition sheds light on a rapidly evolving risk landscape.
The report highlights that not only are average costs moving upward, but the severity of these claims is also shifting toward higher financial brackets. Most notably, the share of claims closing in the substantial indemnity range of $250,000 to $749,999 has climbed from 9.3% to 13.7% since the previous dataset. This upward migration in settlement and judgment values underscores a growing financial vulnerability for individual practitioners, assistants, and practice owners alike.
Industry experts point out that physical therapy professionals operate in an increasingly intricate healthcare environment. While their primary mission remains steadfast—delivering safe, effective care that restores patient mobility and function—the legal and operational complexities surrounding patient treatment have multiplied.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, emphasized the changing nature of the field. Physical therapy professionals are deeply committed to helping patients function at their best, Flynn noted, but they now practice in an environment marked by increasing complexity and evolving risks. She explained that the newly published report was specifically designed to provide physical therapists, physical therapist assistants, and practice owners with deep insights and actionable strategies to help minimize their unique professional liability exposures.
The comprehensive report explores a wide array of professional liability exposures facing the sector. Beyond direct patient care mishaps, the findings delve into specific claim trends, licensure defense matters, detailed case studies, expert analysis, and foundational risk management insights. As the regulatory and legal expectations placed on rehabilitation providers continue to mount, understanding these underlying risk drivers has become a critical priority for practice preservation.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, underscored the value of proactive risk mitigation in preventing costly litigation. By understanding the specific factors that lead to claims, physical therapy professionals and practices can take proactive steps to help reduce overall risk and lower the chance of litigation, Miller stated. She added 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 environments for both physical therapy professionals and the patients they serve.
The dataset underpinning the report provides a robust cross-section of legal and liability challenges within the industry. The general analysis includes 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 resulted in an indemnity payment of $10,000 or greater between January 1, 2020, and December 31, 2025, referred to as the 2026 dataset.
To help the healthcare community digest and apply these findings, HPSO has announced plans to release an upcoming series of seven Physical Therapist Spotlights over the coming months. These spotlights will feature direct links to educational resources that highlight risk control best practices. Key focal points will include critical operational areas such as proper clinical documentation, strategies for navigating licensure defense proceedings, and the integration of emerging technologies into everyday practice.
The publication of the Physical Therapy Professional Liability Claim Report: 5th Edition represents an ongoing, long-term commitment by CNA and HPSO to the education and professional protection of physical therapy providers. By continuously tracking and analyzing liability trends, the organizations aim to equip rehabilitation specialists with the knowledge necessary to navigate an increasingly litigious environment while maintaining high standards of patient care.
Physical therapy professionals, practice owners, and healthcare administrators seeking a deeper understanding of the current liability landscape can access the complete findings. The full report is available for download by visiting the official HPSO resources portal at https://www.hpso.com/ptclaimreport.
