The financial stakes within the physical therapy profession have shifted substantially over the last several years, driven by a sharp escalation in professional liability claim costs, increased severity of indemnity payouts, and growing legal and regulatory vulnerabilities. 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 multifaceted professional liability exposures currently confronting physical therapists, physical therapist assistants, and practice owners. Beyond financial metrics, the analysis underscores emerging operational risks related to manual therapy, patient monitoring, patient injuries, practice-level claims, and licensure defense matters, providing an in-depth look at case studies, data analysis, and overarching risk management insights.
Industry experts point to a changing clinical and litigious landscape as a primary driver for these upward trends. Practitioners today operate in an environment characterized by growing operational complexity, higher patient acuity, and evolving regulatory expectations. These shifting dynamics require heightened vigilance across all facets of clinical practice, documentation, and risk mitigation.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, emphasized the dedication of practitioners while acknowledging the hurdles they face in modern healthcare delivery. Physical therapy professionals are fundamentally committed to delivering safe, effective care that helps patients function at their best, Flynn noted. However, she pointed out that they practice in an environment marked by increasing complexity and evolving risks. The newly published report is intentionally designed to provide physical therapists, physical therapist assistants, and practice owners with actionable insights and strategic perspectives to help minimize their unique professional liability exposures.
The report’s findings paint a vivid picture of escalating financial exposure for practitioners and their insurers. Most notably, the data reveals a significant upward shift in the severity of claims. Since the release of the 2020 dataset, the share of claims closing in the higher indemnity range of $250,000 to $749,999 has risen from 9.3% to 13.7%. This migration toward higher-cost settlements indicates that when legal actions or professional liability claims do materialize against physical therapy providers, they carry a greater financial weight and potential for severe monetary damages.
Underwriting experts note that understanding the root causes of these claims is essential for reversing the trend and protecting practitioners from devastating litigation. Crystal Miller, RPLU, CPCU, underwriting director at CNA, stressed the importance of proactive risk reduction strategies within the rehabilitation sector. 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 explained. She added that the 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 further support practitioners in navigating these mounting exposures, HPSO plans to roll out a specialized series of seven Physical Therapist Spotlights in the coming months. These spotlights will include direct links to resources highlighting risk control best practices, focusing heavily on vital operational areas such as meticulous documentation standards, licensure defense strategies, and the safe integration of emerging technologies into clinical workflows.
The Physical Therapy Professional Liability Claim Report: 5th Edition represents an ongoing, long-term commitment by CNA and HPSO to educating physical therapy professionals and promoting industry-wide safety standards. The overarching analysis detailed in the 2026 dataset is derived from a rigorous examination of 497 closed professional liability claims. This dataset encompasses claims involving physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided services as employees of an insured physical therapy practice between January 1, 2020, and December 31, 2025, provided the incidents resulted in an indemnity payment of $10,000 or greater.
Healthcare professionals, practice owners, and legal analysts seeking a deeper understanding of these liability trends can access the complete findings, along with detailed limitations and statistical considerations, by visiting the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
