The financial and professional risks facing physical therapy practitioners have escalated markedly over recent years, driven by rising claim costs, increasingly complex patient care environments, and mounting exposures related to manual therapy, patient monitoring, and licensure defense. 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 experienced a significant upward surge, climbing 20.3% to reach $162,174.
This comprehensive report, published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, sheds critical light on the evolving risk landscape that physical therapists, physical therapist assistants, and practice owners must navigate in modern clinical practice. Among the most telling indicators of this heightened financial exposure is the distribution of claim settlements. The data reveals that the share of claims closing within the substantial indemnity range of $250,000 to $749,999 has risen from 9.3% to 13.7% since the evaluation of the previous 2020 dataset, signaling a distinct trend toward higher-severity legal actions against rehabilitation professionals.
The newly published findings are derived from an in-depth general analysis of 497 closed professional liability claims involving physical therapists, physical therapist assistants, physical therapy practices, and other allied healthcare practitioners providing services as employees of insured physical therapy practices. The dataset encompasses claims that closed between January 1, 2020, and December 31, 2025, and resulted in an indemnity payment of $10,000 or greater, establishing a robust empirical foundation for understanding contemporary liability trends.
Industry leaders emphasize that while the core mission of rehabilitation providers remains focused on restoring function and improving patient quality of life, the operational context in which they work has grown progressively more intricate. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that modern clinical settings demand an exceptional degree of vigilance as providers balance patient expectations with complex regulatory and clinical standards.
"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," Flynn stated. "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 report explores a wide array of professional liability exposures, examining not only traditional patient injury claims arising from treatment modalities such as manual therapy and exercise monitoring, but also practice-level claims and the complexities surrounding licensure defense matters. As regulatory bodies and state boards face increasing scrutiny, the defense of professional licenses has emerged as a critical component of risk management for physical therapy practitioners, who often require specialized legal support to protect their credentials and livelihood in the wake of patient complaints or administrative inquiries.
Industry experts stress that understanding the root causes of litigation is the most effective way for practitioners and clinic owners to safeguard their practices. By analyzing the specific clinical scenarios, operational vulnerabilities, and administrative pitfalls that frequently precede formal legal action, rehabilitation providers can implement targeted safeguards to enhance patient safety and mitigate the likelihood of disputes escalating into formal lawsuits.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, underscored the preventive value of the newly released data for everyday clinical practice.
"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," Miller said. "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."
To extend the practical utility of the report’s findings beyond the initial publication, HPSO has announced plans to roll out a specialized educational initiative in the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights, each accompanied by direct links to curated resources designed to highlight risk control best practices. These upcoming educational installments will focus on high-impact operational and clinical areas, including proper clinical documentation standards, strategies for effective licensure defense, and the risk management implications associated with the adoption of emerging healthcare technologies in rehabilitation settings.
The publication of the Physical Therapy Professional Liability Claim Report: 5th Edition underscores a long-standing, joint commitment by CNA and HPSO to ongoing professional education and risk awareness within the physical therapy community. By equipping practitioners with empirical data, comprehensive case studies, expert analysis, and actionable risk management insights, the organizations aim to foster a culture of safety that benefits both rehabilitation clinicians and the patients they serve.
Physical therapy professionals, practice administrators, and interested stakeholders seeking a deeper examination of the data, methodology, and comprehensive risk mitigation strategies can access the complete publication by visiting the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
