The financial stakes for physical therapy professionals facing malpractice and liability claims have climbed significantly over recent years, according to a comprehensive new industry analysis. A newly released report indicates that the average total cost incurred for professional liability claims involving physical therapy professionals has jumped by more than 20%, driven by escalating legal expenses, higher indemnity payouts, and increasingly complex clinical and practice-level risks.
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 sheds light on the evolving risk landscape confronting physical therapists, physical therapist assistants, and practice owners across the United States. By examining closed claims, industry trends, and legal defense matters, the publication aims to provide practitioners with the critical context needed to navigate an increasingly litigious healthcare environment.
According to the report, the average total incurred for professional liability claims involving physical therapy professionals has increased by 20.3% to reach $162,174. Furthermore, the severity of these claims is shifting toward higher financial brackets. The share of claims closing in the substantial indemnity range of $250,000 to $749,999 has risen notably from 9.3% to 13.7% since the previous dataset published in 2020. This upward pressure on claim costs underscores the growing financial exposure faced by individual practitioners and group practices alike, making risk awareness more critical than ever.
Industry leaders point out that today’s physical therapy professionals operate in an environment vastly different from previous decades. The modern practice setting is marked by heightened regulatory complexity, advanced therapeutic techniques, and heightened patient expectations, all of which contribute to a unique set of clinical vulnerabilities.
"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 report explores a broad spectrum of professional liability exposures that currently threaten physical therapy practices. Among these are growing risks tied directly to manual therapy techniques, patient monitoring protocols, managing accidental injuries during treatment sessions, practice-level operational claims, and licensure defense matters. As physical therapy expands its scope and integrates more advanced care models, the potential for adverse patient outcomes—and subsequent legal action—demands heightened vigilance from practitioners at every level of experience.
The research underpinning the 5th edition provides an empirical foundation for these observations. 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 specifically captures claims that closed between January 1, 2020, and December 31, 2025, and resulted in an indemnity payment of $10,000 or greater, establishing a clear picture of high-severity risk drivers over the five-year period.
Experts emphasize that the goal of releasing such detailed claims data is not merely to highlight the financial fallout of litigation, but to empower healthcare providers with the knowledge necessary to prevent adverse events before they occur. Understanding the specific clinical missteps or administrative oversights that typically trigger lawsuits allows practices to implement targeted safety measures.
"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 reach and practical application of the report’s findings, HPSO has announced plans to roll out a specialized series of educational resources in the coming months. Specifically, the organization will release a series of seven Physical Therapist Spotlights containing links to supplementary materials. These spotlights are designed to highlight risk control best practices across several critical operational areas, including proper clinical documentation standards, strategies for effective licensure defense, and the careful integration of emerging technologies into everyday patient care.
The release of the Physical Therapy Professional Liability Claim Report: 5th Edition represents an ongoing, collaborative commitment by CNA and HPSO to support the physical therapy community through continuous education and risk mitigation research. By bridging the gap between historical claims data and forward-looking risk management strategies, the organizations hope to foster an environment where high-quality patient care is matched by robust professional protection.
Physical therapy professionals, practice managers, and legal compliance officers seeking a deeper understanding of these liability trends can access the full publication. The complete report is available for download directly through the Healthcare Providers Service Organization website at https://www.hpso.com/ptclaimreport.
