The financial and operational risks facing physical therapists and physical therapy practices have intensified significantly over recent years, according to a comprehensive new industry analysis. The Physical Therapy Professional Liability Claim Report: 5th Edition, recently published by Healthcare Providers Service Organization (HPSO) in partnership with Aon Affinity and CNA, reveals that the average total cost incurred for professional liability claims involving physical therapy professionals has jumped by 20.3%. This notable surge brings the average total incurred cost per claim to $162,174, highlighting a shifting landscape characterized by higher settlement values, increasing litigation frequency, and a broader range of complex professional exposures.
The newly released report underscores a growing financial severity in malpractice and liability cases within the physical therapy sector. Most strikingly, the share of claims closing within the substantial indemnity range of $250,000 to $749,999 has climbed from 9.3% in the previous dataset to 13.7% in the current evaluation. This upward shift in payout sizes reflects not only inflation and the rising costs of medical care and legal defense, but also the expanding scope of practice, heightened expectations from patients, and increased vulnerabilities associated with complex clinical interventions.
Published jointly by HPSO—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, the 5th edition of the report serves as an exhaustive examination of the professional liability exposures confronting physical therapy professionals and practice owners today. Beyond tracking broad claim trends and escalating costs, the report delves deeply into licensure defense matters, offering detailed case studies, expert analysis, and actionable risk management insights designed to help practitioners navigate an increasingly litigious environment.
Industry leaders point out that while physical therapy professionals remain steadfastly dedicated to delivering safe, high-quality care that maximizes patient function and mobility, the systemic environment in which they operate has grown notably more challenging. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that physical therapists, physical therapist assistants, and practice owners now practice in an atmosphere marked by increasing clinical complexity and evolving operational risks. The primary objective of releasing this comprehensive data, Flynn explained, is to equip these healthcare providers and practice owners with the critical insights and strategic awareness necessary to minimize their unique professional liability exposures before minor clinical disagreements or adverse patient outcomes escalate into formal legal action.
The underlying data for the report offers a rigorous look at the realities of modern physical therapy practice. The general analysis compiled within the Physical Therapy Professional Liability Claim Report: 5th Edition encompasses 497 closed professional liability claims. These cases involve physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided services as employees of an insured physical therapy practice. To ensure the findings capture meaningful professional liability events rather than minor administrative disputes, the dataset strictly includes claims closed between January 1, 2020, and December 31, 2025, that ultimately resulted in an indemnity payment of $10,000 or greater, referred to in the research as the 2026 dataset.
Through careful evaluation of these 497 closed claims, the report identifies specific operational and clinical risk drivers that consistently jeopardize physical therapy practices. Among the most prominent risk areas highlighted in the findings are vulnerabilities related to manual therapy techniques, patient monitoring protocols, physical injuries sustained during treatment sessions, practice-level claims, and the growing necessity of robust licensure defense. As physical therapists take on more advanced clinical responsibilities and manage increasingly diverse patient populations—ranging from geriatric individuals with complex comorbidities to high-performance athletes—the potential margins for error narrow, making proactive risk management an essential component of daily practice.
Underwriting experts emphasize that awareness and education remain the most effective defenses against rising litigation rates and escalating claim costs. Crystal Miller, RPLU, CPCU, underwriting director at CNA, noted that by deeply understanding the underlying factors and systemic patterns that routinely lead to professional liability claims, physical therapy professionals and practice owners can take concrete, proactive steps to mitigate their risk profiles and significantly lower the likelihood of facing costly litigation. Miller added that the overarching goal of the report is to elevate industry-wide awareness regarding current trends and primary claim drivers, thereby enhancing risk management knowledge and ultimately supporting safer, higher-quality care for physical therapy professionals and the patients who rely on them.
To extend the reach and practical application of the report’s findings, HPSO has announced plans to roll out a specialized educational series over the coming months. This upcoming initiative will feature a series of seven distinct Physical Therapist Spotlights. Each spotlight will include direct links to specialized resources and educational materials designed to highlight risk control best practices. These targeted resources will address several critical operational and clinical domains identified in the report, including advanced documentation standards, strategies for effective licensure defense, and the careful integration of emerging technology within clinical workflows.
The publication of the Physical Therapy Professional Liability Claim Report: 5th Edition underscores a continuous, long-term commitment by CNA and HPSO to educate the physical therapy community and support the financial and professional security of individual practitioners and clinic owners. By continuously analyzing claims data and sharing transparent insights into where and why liability events occur, the organizations aim to foster a culture of proactive safety across the entire sector.
Physical therapy professionals, practice administrators, and legal counsel seeking a comprehensive understanding of the current liability landscape can access the complete research document. The full Physical Therapy Professional Liability Claim Report: 5th Edition is available for download directly through the Healthcare Providers Service Organization website at https://www.hpso.com/ptclaimreport.
