Professional liability claim costs for physical therapy professionals have escalated significantly, driven by growing vulnerabilities associated with manual therapy, patient monitoring, physical injuries, practice-level claims, and licensure defense matters. According to the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, these rising financial metrics underscore an increasingly complex operational environment for practitioners across the United States.
Published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, the comprehensive report examines the evolving professional liability exposures facing physical therapists, physical therapist assistants, and physical therapy practices. By analyzing recent claim trends, licensure defense issues, and real-world case studies, the publication provides critical risk management insights designed to help practitioners navigate heightened legal and professional risks.
At the center of the report’s findings is a stark increase in financial severity. The average total incurred cost for professional liability claims involving physical therapy professionals has risen by 20.3%, reaching $162,174. Furthermore, the share of claims closing in the higher indemnity range—specifically between $250,000 and $749,999—has experienced a notable upward trajectory, climbing from 9.3% to 13.7% since the evaluation of the previous dataset. This shift toward higher-cost resolutions points to a more litigious environment and a greater severity in the underlying patient injuries or legal challenges associated with modern physical therapy practice.
Industry experts emphasize that these numbers reflect a broader transformation in how physical therapy care is delivered and scrutinized. Practitioners today operate in an environment characterized by advanced treatment modalities, heightened patient expectations, and complex regulatory frameworks, all of which contribute to elevated professional exposure.
"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 serves as an educational tool to bridge the gap between clinical practice and risk mitigation. By breaking down the specific drivers behind professional liability claims, the report aims to foster safer clinical environments and reduce the likelihood of costly litigation.
"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 extend the reach of these findings beyond the initial publication, HPSO has announced plans to roll out a series of seven specialized resources known as Physical Therapist Spotlights over the coming months. These spotlights will feature targeted links and risk control best practices addressing critical operational areas, including clinical documentation standards, strategies for effective licensure defense, and the safe integration of emerging healthcare technologies into daily practice.
The data foundational to the Physical Therapy Professional Liability Claim Report: 5th Edition represents an ongoing, long-term commitment by CNA and HPSO to education and risk awareness within the rehabilitation sector. The general analysis underpinning the 2026 dataset incorporates 497 closed professional liability claims. These cases involve physical therapists, physical therapist assistants, physical therapy practices, and other allied healthcare practitioners who provided services as employees of an insured physical therapy practice between January 1, 2020, and December 31, 2025. Crucially, the dataset specifically captures claims that resulted in an indemnity payment of $10,000 or greater, ensuring a focus on substantial legal and financial events.
As the physical therapy profession continues to adapt to new clinical demands and regulatory landscapes, stakeholders hope that the insights provided in the report will empower practitioners to strengthen their internal protocols. Healthcare professionals, practice owners, and administrators seeking a deeper understanding of these liability trends can access the complete findings and associated resources by visiting the official HPSO website at https://www.hpso.com/ptclaimreport.
