The financial and professional risks associated with practicing physical therapy have escalated significantly over recent years, driven by rising claim costs, increasingly complex patient care environments, and heightened vulnerabilities related to manual therapy, patient monitoring, and licensure defense. According to the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, the average total incurred cost for professional liability claims involving physical therapy professionals has risen by 20.3%, reaching $162,174.
The comprehensive report, published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, sheds light on the multifaceted professional liability exposures currently facing physical therapists, physical therapist assistants, and practice owners. Alongside detailed claim trends and analysis, the publication provides industry professionals with critical insights into licensure defense matters, real-world case studies, and practical risk management strategies aimed at safeguarding both practitioners and their patients.
In examining the shifting landscape of malpractice and professional liability, the report points to a notable escalation in high-severity payouts. Most strikingly, the share of claims closing in the substantial $250,000 to $749,999 indemnity range has experienced a notable upward trajectory, climbing from 9.3% in the previous dataset to 13.7% in the current findings. This upward drift in high-value settlements and judgments underscores the growing financial exposure confronting physical therapy practices across the United States.
Industry leaders emphasize that these statistics reflect a clinical landscape that is rapidly growing more intricate. Physical therapy professionals operate in an environment where patient expectations, regulatory requirements, and treatment modalities are continuously evolving. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that while practitioners remain deeply dedicated to delivering safe and effective care that maximizes patient function, they must do so amid mounting complexities and risks. She explained that the newly released report was specifically developed to equip physical therapists, physical therapist assistants, and practice owners with the insights and actionable strategies necessary to mitigate their unique professional liability exposures.
The report’s comprehensive dataset encompasses a rigorous review of 497 closed professional liability claims. These cases involved physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided services as employees of insured physical therapy practices between January 1, 2020, and December 31, 2025. To be included in the primary general analysis of the 2026 dataset, each claim had to have resulted in an indemnity payment of $10,000 or greater, ensuring that the findings accurately capture significant legal and financial events within the profession.
As the healthcare sector continues to grapple with these upward cost pressures, risk management experts stress the importance of proactive organizational and individual behavior. Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized that understanding the underlying factors that trigger claims allows physical therapy professionals and practice leadership to implement preventive measures early. By taking proactive steps to reduce operational and clinical risk, practitioners can effectively lower their exposure to litigation. Miller added that the primary objective of the report is to elevate awareness surrounding prevailing trends and primary claim drivers, thereby enhancing risk management knowledge across the board and supporting safer, higher-quality care for every patient.
To build upon the release of the comprehensive report and extend its educational reach, HPSO has announced plans to roll out a specialized series of seven Physical Therapist Spotlights over the coming months. These upcoming publications will feature direct links to dedicated resources highlighting risk control best practices. Key areas of focus for the spotlight series will include critical operational and clinical topics such as meticulous clinical documentation, strategies for effective licensure defense, and the navigating of challenges associated with emerging healthcare technologies.
The publication of the Physical Therapy Professional Liability Claim Report: 5th Edition represents a continuation of the longstanding commitment by CNA and HPSO to ongoing professional education and risk awareness within the physical therapy community. By systematically analyzing half a decade of closed claims data, the report serves as an essential tool for practitioners seeking to understand the shifting legal and financial realities of modern clinical practice.
Physical therapists, physical therapist assistants, practice owners, and other interested healthcare stakeholders can access and download the complete report by visiting the official HPSO resource portal at https://www.hpso.com/ptclaimreport, where additional risk management materials, legal resources, and educational tools are also made available to support the profession.
