The financial and professional risks facing physical therapy providers have escalated significantly 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 jumped by 20.3%, reaching $162,174.
The 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 light on the evolving landscape of professional liability exposures confronting physical therapists, physical therapist assistants, and physical therapy practice owners. Alongside detailed claim trends, the publication offers valuable case studies, in-depth legal analysis, and targeted risk management insights designed to help practitioners navigate an increasingly litigious healthcare sector.
One of the most striking findings in the new dataset is the upward shift in the severity of payouts. The report reveals that the share of claims closing in the higher indemnity range—specifically between $250,000 and $749,999—has risen notably from 9.3% to 13.7% since the previous dataset published in 2020. This upward drift in high-cost settlements underscores a growing financial exposure for practitioners and highlights the rising stakes involved in modern physical therapy practice.
Industry leaders emphasize that these statistics reflect a broader evolution in the practice environment, where clinicians must balance the demands of delivering high-quality, effective care with the management of multifaceted risk factors.
"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 analysis underscores that liability risks are no longer confined strictly to traditional patient treatment errors. Modern physical therapy practices face a web of interconnected vulnerabilities, ranging from patient injuries sustained during manual therapy sessions to lapses in clinical monitoring, complex practice-level claims, and increasingly aggressive licensure defense matters. As regulatory standards tighten and patient expectations shift, these operational and clinical pressure points are translating more frequently into formal legal challenges and regulatory scrutiny.
Underwriters and risk mitigation experts stress that understanding the root causes of these claims is essential for clinicians seeking to safeguard their practices and maintain high standards of patient safety. By identifying the specific clinical scenarios and administrative pitfalls that most frequently trigger litigation, providers can implement targeted 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."
To help bridge the gap between risk awareness and clinical implementation, HPSO has announced plans to roll out a targeted educational initiative in the coming months. The organization will release a series of seven Physical Therapist Spotlights, each accompanied by specialized resources and links. These spotlights are designed to highlight risk control best practices across critical operational areas, including documentation standards, navigating licensure defense proceedings, and the integration of emerging technologies into clinical workflows.
The findings detailed in the Physical Therapy Professional Liability Claim Report: 5th Edition are derived from a rigorous empirical analysis. The research evaluated 497 closed professional liability claims that occurred between January 1, 2020, and December 31, 2025—collectively referred to as the 2026 dataset. To qualify for inclusion in the study, the claims had to involve physical therapists, physical therapist assistants, physical therapy practices, or other healthcare practitioners providing services as employees of an insured physical therapy practice, and they must have resulted in an indemnity payment of $10,000 or greater. This robust sample provides a clear, data-driven window into the types of incidents that most frequently result in severe financial and legal consequences for practitioners.
Through this ongoing publication, CNA and HPSO continue their long-standing commitment to educating physical therapy professionals and equipping them with the tools necessary to navigate complex legal and ethical landscapes. By examining real-world claim trajectories, the report serves as both an analytical benchmark and a practical guide for clinicians striving to deliver optimal care in a high-risk environment.
Physical therapy professionals, practice owners, and industry stakeholders seeking a deeper understanding of these liability trends can access the complete findings. The full Physical Therapy Professional Liability Claim Report: 5th Edition is available for download through the HPSO website at https://www.hpso.com/ptclaimreport.
