Professional liability claim costs for physical therapy professionals have escalated significantly, driven by growing exposures related to manual therapy, patient monitoring, injuries, practice-level claims, and licensure defense matters. The average total incurred cost for these claims has surged by 20.3% to reach $162,174, according to the newly released Physical Therapy Professional Liability Claim Report: 5th Edition.
Published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, the comprehensive report sheds light on the evolving risk landscape confronting physical therapists, physical therapist assistants, and physical therapy practice owners. Alongside detailed claim trends and licensure defense analyses, the publication offers valuable case studies, expert evaluations, and targeted risk management insights intended to help practitioners navigate an increasingly complex operational environment.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, emphasized the dedication of practitioners while acknowledging the mounting challenges they face in modern clinical settings. She noted that physical therapy professionals are deeply committed to delivering safe, effective care that enables patients to function at their highest potential. However, she pointed out that they currently practice in an environment marked by growing complexity and evolving risks. According to Flynn, the newly published report was intentionally designed to provide physical therapists, physical therapist assistants, and practice owners with the necessary insights and strategies to help minimize their unique professional liability exposures.
The report’s findings underscore a noticeable shift in the severity of professional liability matters affecting the sector. Most notably, the share of claims closing in the higher indemnity range—specifically between $250,000 and $749,999—has risen from 9.3% to 13.7% when compared against the previous dataset from 2020. This upward movement in payout amounts highlights the rising financial stakes associated with clinical errors, adverse patient outcomes, and subsequent legal challenges within the physical therapy profession.
Industry experts stress that awareness of these underlying trends is vital for mitigating future litigation. Crystal Miller, RPLU, CPCU, underwriting director at CNA, explained that by understanding the specific factors that lead to claims, physical therapy professionals and practices can take proactive steps to help reduce risk and lower the chance of litigation. She added that the primary aim of the report is to raise awareness of prevailing trends and major claim drivers, thereby enhancing risk management knowledge and supporting safer, higher-quality care for physical therapy professionals and their patients alike.
To further support practitioners in applying these insights, HPSO announced plans to roll out a specialized educational initiative in the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights. These installments will include direct links to resources highlighting risk control best practices, focusing heavily on critical operational areas such as effective documentation, strategies for licensure defense, and the safe integration of emerging technologies into clinical practice.
The data analyzed in the Physical Therapy Professional Liability Claim Report: 5th Edition represents a continued, shared commitment by CNA and HPSO to educating the physical therapy community and promoting risk awareness. The underlying general analysis encompasses 497 closed professional liability 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. The dataset specifically captures claims closed between January 1, 2020, and December 31, 2025, that resulted in an indemnity payment of $10,000 or greater, referred to collectively as the 2026 dataset.
Practitioners, practice owners, and healthcare administrators interested in examining the complete findings, methodological limitations, and detailed case breakdowns can access the full report directly through the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
