The financial and professional risks facing physical therapy providers have escalated markedly over recent years, according to a comprehensive new industry analysis. The latest data reveals that the average total incurred cost for professional liability claims involving physical therapy professionals has jumped by more than 20%, driven by intensifying vulnerabilities associated with hands-on treatments, patient monitoring protocols, injury management, practice-level liabilities, and complex licensure defense proceedings.
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 Physical Therapy Professional Liability Claim Report: 5th Edition provides an in-depth examination of the professional liability exposures currently confronting physical therapists, physical therapist assistants, and physical therapy practice owners. The newly released publication outlines critical shifts in claim trends, analyzes licensure defense matters, and incorporates detailed case studies alongside targeted risk management insights designed to help practitioners navigate an increasingly challenging operational landscape.
According to the report, the average total incurred amount for professional liability claims involving physical therapy professionals has increased by 20.3%, reaching $162,174. This upward movement in overall claim severity is further underscored by a notable shift in the distribution of high-value payouts. Specifically, the share of claims closing within the substantial $250,000 to $749,999 indemnity range expanded significantly, rising from 9.3% in the prior dataset to 13.7% in the current findings. These figures point to a growing financial exposure for practitioners and practices alike as the legal and regulatory environment surrounding rehabilitative care grows more stringent.
Industry leaders emphasize that these financial metrics reflect a broader transformation in the daily practice of physical therapy, where clinicians must balance the delivery of advanced, evidence-based care with heightened operational and legal scrutiny.
“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 comprehensive analysis draws from a robust dataset of closed professional liability claims to paint a clear picture of where vulnerabilities lie within modern practice settings. The research 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 between January 1, 2020, and December 31, 2025. To be included in this 2026 dataset, each claim had to have resulted in an indemnity payment of $10,000 or greater, ensuring that the findings reflect material legal and financial events rather than minor administrative disputes.
By focusing on these substantive claims, the report offers a granular look at the specific clinical and operational triggers that frequently precipitate litigation or regulatory investigations. Among the primary risk drivers identified in the publication are manual therapy techniques, which require precise execution and thorough patient assessment; ongoing clinical monitoring during and after therapeutic interventions; the management of secondary injuries that may occur during rehabilitation; broader practice-level liabilities; and the increasing necessity of robust licensure defense when practitioners face administrative complaints before state boards.
Underwriters and risk mitigation experts note that while the data highlights troubling upward trends in claim severity and cost, it also provides a roadmap for proactive risk reduction. Understanding the precise mechanisms that lead patients to initiate legal action or file regulatory complaints allows clinical teams to implement targeted safeguards long before an adverse event occurs.
“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 help the physical therapy community translate these findings into actionable daily practices, HPSO has announced plans to roll out an educational series in the coming months. This upcoming initiative will feature a series of seven Physical Therapist Spotlights, complete with direct links to supplementary resources designed to highlight risk control best practices. Key areas of focus within these spotlights will include documentation standards, strategies for effective licensure defense, and the careful integration of emerging technology within clinical workflows.
The release of the 5th edition of the claim report underscores a sustained, long-term commitment by both CNA and HPSO to ongoing professional education and risk awareness within the rehabilitative healthcare sector. By equipping practitioners with empirical data, real-world case analyses, and expert commentary, the organizations aim to foster a culture of safety that protects both patients and providers from the devastating impacts of professional liability disputes.
Healthcare professionals, practice administrators, and legal counsel interested in examining the complete findings, methodological limitations, and detailed risk control recommendations can access the full publication online. The complete 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.
