The financial stakes within the physical therapy profession have climbed significantly over recent years, driven by rising claim costs, increasingly complex patient care environments, and mounting legal and regulatory pressures. 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 surged 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 risk landscape confronting physical therapists, physical therapist assistants, and practice owners. Among the most notable findings is a shift in the severity of payouts. The share of claims closing within the substantial $250,000 to $749,999 indemnity range rose notably from 9.3% to 13.7% when compared against the previous 2020 dataset.
This upward movement in both overall incurred costs and high-severity payouts underscores the growing financial exposure faced by rehabilitation specialists. The report offers an in-depth examination of the professional liability exposures impacting physical therapy professionals and practices, encompassing detailed claim trends, licensure defense matters, informative case studies, rigorous data analysis, and essential risk management insights.
Industry leaders emphasize that the modern practice environment requires heightened vigilance and proactive risk mitigation. Physical therapy professionals operate in a setting characterized by complex patient needs, advanced therapeutic techniques, and heightened regulatory oversight.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that while practitioners remain deeply dedicated to delivering safe and effective care that maximizes patient function, the external environment continues to grow more challenging. Flynn explained that the latest edition of the report was specifically designed to provide physical therapists, physical therapist assistants, and practice owners with the critical insights and strategic frameworks necessary to minimize their unique professional liability exposures.
The report’s findings point to several distinct areas of vulnerability that contribute to the rising tide of litigation and administrative actions. While the core mission of rehabilitation is to restore mobility and alleviate pain, certain clinical interventions and operational practices carry inherent legal risks. The data highlights growing concerns related to manual therapy techniques, patient monitoring protocols, patient injuries occurring during treatment or facility navigation, broader practice-level claims, and the increasing frequency and complexity of licensure defense proceedings.
As regulatory bodies and licensing boards face mounting scrutiny, physical therapy professionals find themselves increasingly needing defense representation to protect their credentials against administrative complaints and disciplinary actions. Licensure defense matters represent a critical component of professional liability protection, as an adverse board action can severely disrupt a practitioner’s career and livelihood, independent of civil malpractice litigation.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized the value of data-driven risk management in combating these escalating trends. Miller pointed out that by thoroughly understanding the underlying factors and clinical pitfalls that lead to formal claims, physical therapy professionals and practice organizations can implement proactive measures designed to curtail risk and substantially lower the probability of litigation. The ultimate objective of the report, according to Miller, is to heighten industry-wide awareness regarding prevailing trends and primary claim drivers, thereby enhancing risk management knowledge and fostering safer, higher-quality care environments for both practitioners and their patients.
To translate these findings into actionable safeguards, HPSO has announced plans to roll out a specialized series of seven Physical Therapist Spotlights over the coming months. These upcoming releases will feature direct links to targeted educational resources highlighting risk control best practices across critical operational and clinical domains, including meticulous documentation standards, robust licensure defense strategies, and the safe integration of emerging technologies into clinical practice.
The data underpinning the Physical Therapy Professional Liability Claim Report: 5th Edition represents a collaborative, ongoing commitment by CNA and HPSO to support and educate the physical therapy community. The broad statistical analysis featured in the report is derived from 497 closed professional liability claims. This dataset encompasses matters 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. To ensure analytical relevance, the dataset specifically includes claims that resulted in an indemnity payment of $10,000 or greater, categorized for the purposes of the report as the 2026 dataset, subject to specific reporting limitations and considerations.
Professionals, practice administrators, and legal scholars seeking a comprehensive understanding of the current liability climate can access the complete report directly through the HPSO online resource portal.
