The financial stakes within the physical therapy profession are climbing higher, driven by escalating professional liability claim costs, increased severity of payouts, and a more complex legal and regulatory landscape. 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 significantly, marking a notable 20.3% increase to reach $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 risk exposures confronting physical therapists, physical therapist assistants, and physical therapy practice owners. Beyond the rising average costs, the data reveals a shift toward higher-severity outcomes. Specifically, the share of claims closing in the substantial $250,000 to $749,999 indemnity range climbed from 9.3% to 13.7% when compared against the previous 2020 dataset.
Industry experts point out that these upward trends underscore a growing array of vulnerabilities in daily clinical practice. The report highlights specific risk areas that continue to challenge practitioners, including manual therapy techniques, patient monitoring protocols, patient injuries, practice-level claims, and the increasing frequency and complexity of licensure defense matters. As clinical environments become more demanding, practitioners face multifaceted exposures that extend well beyond traditional direct patient care errors.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, emphasized the dedication of practitioners while acknowledging the harsher operating environment they now navigate. Physical therapy professionals are deeply 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 noted. She explained that the newly published report was specifically designed to provide physical therapists, physical therapist assistants, and practice owners with critical insights and actionable strategies to help minimize their unique professional liability exposures.
The publication arrives at a time when risk management education is more vital than ever for healthcare providers seeking to protect their licenses, livelihoods, and reputations. By analyzing closed claims and identifying the underlying drivers of litigation, the report offers a roadmap for recognizing potential pitfalls before they materialize into formal legal challenges or regulatory complaints.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, echoed these sentiments regarding the proactive value of the research. 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 stated. She added that the primary objective of the report is to raise awareness of prevailing trends and claim drivers to enhance risk management knowledge and support safer care for physical therapy professionals and their patients alike.
To further amplify these risk management lessons, 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 valuable resources. These spotlights are curated to highlight risk control best practices across critical operational and clinical domains, such as proper documentation standards, effective navigation of licensure defense proceedings, and the safe integration of emerging healthcare technology into physical therapy practices.
The findings featured in the Physical Therapy Professional Liability Claim Report: 5th Edition are rooted in a rigorous empirical analysis. The underlying dataset encompasses 497 closed professional liability claims involving physical therapists, physical therapist assistants, physical therapy practices, and other healthcare practitioners who provided services as employees of an insured physical therapy practice. To ensure the relevance and timeliness of the insights, the analyzed claims are restricted to those that closed between January 1, 2020, and December 31, 2025, and resulted in an indemnity payment of $10,000 or greater, collectively referred to in the research as the 2026 dataset.
This extensive publication reflects a long-standing, ongoing commitment by both CNA and HPSO to the professional education and risk awareness of the physical therapy community. As legal environments shift and patient expectations evolve, access to granular claims data and expert analysis remains an indispensable tool for healthcare providers striving to maintain the highest standards of clinical excellence and patient safety.
Physical therapy professionals, practice owners, and healthcare administrators interested in reviewing the full scope of the data, case studies, and risk control recommendations can access the complete document online. The full report is available for download through the Healthcare Providers Service Organization website at https://www.hpso.com/ptclaimreport.
