The financial and professional risks associated with practicing physical therapy have escalated significantly over recent years, according to a newly released comprehensive industry analysis. The average total incurred cost for professional liability claims involving physical therapy professionals has jumped by 20.3%, reaching a striking $162,174 per claim. This upward trajectory underscores a rapidly shifting risk landscape for practitioners navigating an increasingly complex healthcare environment.
The findings come from the newly published Physical Therapy Professional Liability Claim Report: 5th Edition, a joint publication by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA. The exhaustive report provides a deep dive into the professional liability exposures currently facing physical therapy professionals and independent practices. By analyzing claim trends, licensure defense matters, real-world case studies, and specialized risk management insights, the publication aims to shed light on the primary drivers of litigation and financial liability in the sector.
According to the data, the severity of claims is rising alongside overall costs. Most notably, the share of claims closing within the substantial $250,000 to $749,999 indemnity range has expanded from 9.3% to 13.7% since the publication of the previous dataset. This upward movement into higher indemnity brackets signals that when legal challenges or malpractice claims do arise, they are increasingly costly to resolve, placing a heavier financial burden on insurers, practice owners, and individual practitioners alike.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that while practitioners remain deeply dedicated to providing safe and effective care, the operational landscape has become markedly more challenging. Physical therapy professionals strive every day to help patients function at their best, Flynn explained, but they do so in an environment marked by growing complexity and evolving risks. She emphasized that the newly published report was specifically designed to provide physical therapists, physical therapist assistants, and practice owners with the critical insights and strategic tools necessary to help minimize their unique professional liability exposures.
The comprehensive report highlights a wide array of specific professional liability exposures facing the physical therapy community. These encompass growing risks related to manual therapy techniques, patient monitoring protocols, patient injuries occurring during treatment or facility navigation, practice-level claims, and the increasingly complex arena of licensure defense. As regulatory requirements tighten and patient expectations evolve, practitioners find themselves vulnerable to a multifaceted set of legal and professional challenges that extend far beyond traditional clinical misjudgments.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, underscored the importance of proactive risk mitigation in light of these concerning trends. By understanding the underlying factors that lead to claims and legal action, physical therapy professionals and practices can take deliberate, proactive steps to help reduce their overall risk profile and lower the chance of costly litigation, Miller stated. She added that the primary goal of the report is to raise awareness regarding emerging trends and primary claim drivers, thereby enhancing risk management knowledge and ultimately supporting safer, higher-quality care for physical therapy professionals and their patients.
To help the physical therapy community digest and apply these crucial lessons, HPSO announced plans to roll out a series of seven specialized Physical Therapist Spotlights over the coming months. These upcoming releases will feature direct links to educational resources that highlight risk control best practices across several critical operational domains, including proper clinical documentation, effective strategies for 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 the education and professional protection of the physical therapy workforce. The general analysis compiled within the 2026 dataset is derived from a rigorous examination of 497 closed professional liability claims. This specific pool encompasses claims 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, provided the incidents resulted in an indemnity payment of $10,000 or greater.
Industry analysts point out that while the numbers reflect a challenging legal environment, the availability of detailed claims data offers a clear roadmap for risk reduction. By carefully reviewing the case studies, legal analyses, and loss control recommendations detailed in the 5th edition, physical therapy practices can better insulate themselves against the rising tide of liability costs.
For practitioners, clinic managers, and legal advisors seeking a comprehensive understanding of the current liability climate, the complete report is publicly accessible. Interested parties can download the full Physical Therapy Professional Liability Claim Report: 5th Edition by visiting the HPSO resource portal online, where additional risk management tools and informational resources are also made available to support the healthcare community.
