The financial stakes within the physical therapy profession have risen sharply over recent years, according to a comprehensive new industry analysis. A newly released joint report from Healthcare Providers Service Organization (HPSO) and CNA indicates that professional liability claim costs for physical therapy professionals have escalated significantly. The findings highlight a growing landscape of complex risks spanning manual therapy, patient monitoring, physical injuries, practice-level claims, and licensure defense matters that clinicians and facility owners must navigate in an increasingly challenging healthcare environment.
Published by HPSO—which operates as part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—in partnership with CNA, the Physical Therapy Professional Liability Claim Report: 5th Edition sheds light on the evolving professional liability exposures facing physical therapists, physical therapist assistants, and physical therapy practices. Alongside macro-level claim trends and licensure defense statistics, the publication incorporates detailed case studies, expert analysis, and actionable risk management insights designed to help practitioners safeguard their livelihoods and maintain high standards of patient safety.
The report’s overarching metric underscores a troubling financial trajectory for the sector. The average total incurred for professional liability claims involving physical therapy professionals has increased by 20.3 percent, climbing to $162,174. Furthermore, the severity of these legal actions is shifting toward higher-cost outcomes. The share of claims closing within the substantial $250,000 to $749,999 indemnity range rose notably from 9.3 percent to 13.7 percent when compared against the benchmark data from the previous 2020 dataset.
Industry leaders point to a modern practice environment characterized by heightened clinical complexity and mounting operational pressures as primary catalysts for these rising figures.
"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 its conclusions from a robust data pool. The general analysis encompasses 497 closed professional liability claims involving physical therapists, physical therapist assistants, physical therapy practices, and other healthcare practitioners providing services as employees of an insured physical therapy practice. The dataset strictly evaluates claims that closed between January 1, 2020, and December 31, 2025, and that resulted in an indemnity payment of $10,000 or greater, marking what is referred to in the report as the 2026 dataset.
Beyond financial severity, the report delves into the specific operational and clinical drivers that trigger litigation and administrative actions against rehabilitation professionals. While physical therapy is fundamentally designed to restore movement and alleviate pain, the manual interventions, exercise prescriptions, and patient monitoring required during recovery carry inherent liabilities. Manual therapy techniques, patient falls or injuries during active rehabilitation sessions, and complex patient monitoring requirements are among the focal areas where risk exposure continues to concentrate. Additionally, practice-level operational claims and formal licensure defense proceedings represent critical vulnerability points for practitioners who may find their professional credentials challenged before state regulatory boards.
Mitigating these exposures requires a proactive shift in daily clinical and administrative routines across outpatient clinics, hospitals, and private practices, according to underwriting experts.
"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 extend the practical utility of the 5th edition report beyond its initial publication, HPSO has announced plans to roll out an educational series in the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights. These forthcoming installments will feature direct links to supplemental educational resources aimed at highlighting risk control best practices. Key focal points of the spotlight series will include meticulous clinical documentation standards, strategies for effective licensure defense, and the risk management implications of emerging technologies within the rehabilitation space.
The release of the Physical Therapy Professional Liability Claim Report: 5th Edition underscores an ongoing, long-term commitment by CNA and HPSO to empirical research and professional education within the allied health sectors. By systematically tracking where and why claims originate, the organizations aim to arm individual clinicians and practice leadership with the empirical data needed to anticipate vulnerabilities, adapt clinic workflows, and ultimately foster safer therapeutic environments for patients nationwide.
To download the complete report and access supplementary risk management tools, interested professionals can visit the official publication portal at https://www.hpso.com/ptclaimreport.
