Professional liability claim costs for physical therapy professionals have escalated significantly, driven by a combination of growing risks associated with manual therapy, patient monitoring, patient injuries, practice-level claims, and licensure defense matters. According to the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, the average total incurred for professional liability claims involving physical therapy professionals has jumped by 20.3% to reach $162,174.
Furthermore, the data shows that the financial severity of these legal challenges is worsening. The share of claims closing in the higher indemnity range of $250,000 to $749,999 has risen from 9.3% to 13.7% since the previous dataset published in 2020. This comprehensive report was published jointly by Healthcare Providers Service Organization (HPSO), part of the Healthcare division of Aon Affinity—the affinity business of Aon plc (NYSE: AON)—and CNA (NYSE: CNA). It offers a deep dive into the professional liability exposures facing physical therapy professionals and practices, detailing shifting claim trends, licensure defense issues, informative case studies, in-depth analysis, and vital risk management insights.
The publication comes at a time when the healthcare sector as a whole is navigating a more litigious and complex environment. Physical therapy professionals operate under high-pressure conditions where patient expectations, physical demands, and administrative complexities intersect.
“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. She noted that the newly published report is specifically designed to provide physical therapists, physical therapist assistants, and practice owners with the necessary insights and practical strategies to help minimize their unique professional liability exposures.
The publication of the fifth edition underscores a multi-year effort to track liability trends and provide actionable data to the physical therapy community. Industry experts emphasize that understanding the underlying mechanisms of malpractice claims and board complaints is the first line of defense for practitioners seeking to protect their licenses and livelihoods.
“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. She explained that the core objective of the report is to raise awareness regarding emerging trends and primary claim drivers, thereby enhancing risk management knowledge and supporting safer, higher-quality care for physical therapy professionals and the patients they serve.
To ensure that the findings of the report translate into actionable educational tools, HPSO announced plans to release a specialized series of seven Physical Therapist Spotlights in the coming months. These upcoming spotlights will feature direct links to supplemental resources highlighting risk control best practices. Key subject areas covered in this upcoming series will include critical topics such as thorough clinical documentation, strategies for effective licensure defense, and the safe integration of emerging technologies into everyday practice.
The data and general analysis compiled within the Physical Therapy Professional Liability Claim Report: 5th Edition are derived from an extensive examination of closed professional liability claims. Specifically, the 2026 dataset incorporates 497 closed professional liability claims involving physical therapists, physical therapist assistants, physical therapy practices, and other healthcare practitioners who provided services as employees of an insured physical therapy practice. The analysis covers claims closed between January 1, 2020, and December 31, 2025, that resulted in an indemnity payment of $10,000 or greater, while acknowledging specific analytical limitations and considerations outlined within the text of the report.
Healthcare professionals, practice administrators, and legal experts interested in reviewing the complete findings, statistical breakdowns, and risk mitigation strategies can access the full report online by visiting the designated HPSO resource portal at https://www.hpso.com/ptclaimreport.
