Professional liability claim costs for physical therapy professionals have escalated significantly, driven by growing vulnerabilities associated with manual therapy, patient monitoring, physical injuries, practice-level claims, and licensure defense matters. According to the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, the financial and legal landscape for rehabilitation specialists is undergoing a notable shift toward higher severity outcomes.
Published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, an affinity business of Aon plc—and CNA, the comprehensive report examines the multifaceted professional liability exposures facing physical therapists, physical therapist assistants, and physical therapy practices. Beyond analyzing prevailing claim trends and complex licensure defense matters, the publication provides industry professionals with detailed case studies, expert legal and clinical analysis, and targeted risk management insights intended to safeguard practitioners and elevate the standard of patient care.
The core data driving the 5th edition underscores a sharp escalation in financial exposure. The average total incurred cost for professional liability claims involving physical therapy professionals has risen by 20.3%, reaching $162,174 per claim. Furthermore, the severity distribution of these legal actions has shifted upward. The share of claims closing in the substantial indemnity range of $250,000 to $749,999 increased notably from 9.3% to 13.7% when compared against the benchmark 2020 dataset.
Industry experts note that these rising figures reflect an increasingly complex legal and clinical environment for rehabilitation providers.
“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 encompasses closed professional liability claims involving physical therapists, physical therapist assistants, physical therapy practices, and allied healthcare practitioners who provided services as employees of insured physical therapy practices. Specifically, the general dataset evaluates 497 closed claims that occurred between January 1, 2020, and December 31, 2025, each resulting in an indemnity payment of $10,000 or greater. This dataset forms the foundation for understanding how patient interactions, clinical decision-making, and administrative procedures intersect with legal liability in modern practice settings.
The findings are intended to serve as both a warning and a practical roadmap for providers seeking to insulate themselves and their practices from crippling litigation. By examining the precise catalysts behind malpractice suits and board complaints, practitioners can better navigate the hazards inherent in hands-on medical treatments.
“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 bridge the gap between risk data and everyday clinical application, HPSO has announced plans to roll out a series of seven distinct Physical Therapist Spotlights over the coming months. These specialized educational resources will feature direct links to tools and guidance emphasizing risk control best practices. Key focus areas for the upcoming spotlights will include rigorous clinical documentation standards, strategies for navigating licensure defense proceedings, and the safe integration of emerging technologies into therapeutic workflows.
The release of the 5th edition report represents a continuation of the longstanding commitment by CNA and HPSO to ongoing professional education and risk mitigation within the rehabilitation sector. By systematically tracking where and why claims originate, the organizations aim to arm physical therapy providers with the empirical knowledge required to anticipate legal challenges before they materialize in the courtroom.
Physical therapy professionals, practice owners, and healthcare administrators interested in reviewing the complete data set, examining specific case study breakdowns, and exploring localized risk management recommendations can access the full publication online. The Physical Therapy Professional Liability Claim Report: 5th Edition is available for download directly through the HPSO resource portal at https://www.hpso.com/ptclaimreport.
