Professional liability claim costs for physical therapy professionals have risen significantly, driven by growing risks associated with manual therapy, patient monitoring, injuries, practice-level claims, and licensure defense matters. According to the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, the financial stakes for practitioners and practice owners alike have reached new heights in an increasingly complex healthcare environment.
Published by Healthcare Providers Service Organization (HPSO)—which is part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, the comprehensive report sheds light on the evolving professional liability exposures facing the physical therapy sector. The publication includes detailed claim trends, analysis of licensure defense issues, real-world case studies, and vital risk management insights designed to help practitioners navigate these mounting hazards.
Data from the report shows that the average total incurred cost for professional liability claims involving physical therapy professionals has increased by 20.3%, reaching $162,174. Furthermore, the severity of these legal challenges is escalating. 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 evaluated in 2020. These figures underscore a shifting landscape where errors, patient injuries, or regulatory missteps can carry severe financial and professional consequences.
Industry leaders emphasize that the report serves as more than just a statistical overview; it is an educational tool meant to foster safer clinical environments. "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 analysis is built upon a robust examination of closed claims handled by CNA and HPSO. Specifically, 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 captures claims that concluded between January 1, 2020, and December 31, 2025, and resulted in an indemnity payment of $10,000 or greater, referred to in the report as the 2026 dataset.
As the physical therapy profession adapts to modern clinical demands, technological advancements, and shifting regulatory frameworks, the underwriters and risk managers behind the report stress the importance of proactive risk mitigation. Understanding the specific clinical scenarios and administrative pitfalls that most frequently lead to litigation is considered a critical first line of defense for practitioners seeking to protect their livelihoods and ensure patient safety.
"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 targeted educational initiative in the coming months. The organization will release a series of seven Physical Therapist Spotlights containing links to specialized resources. These spotlights will highlight risk control best practices across several key operational and clinical areas, including documentation standards, navigating licensure defense proceedings, and the integration of emerging technology into daily practice.
The partnership between CNA and HPSO in publishing the Physical Therapy Professional Liability Claim Report: 5th Edition reflects a long-standing commitment to professional education, risk awareness, and loss prevention within the rehabilitation therapy sector. By equipping physical therapy professionals, assistants, and practice administrators with empirical data and expert commentary, the organizations hope to curb the upward trajectory of claim costs and mitigate the underlying vulnerabilities that lead to legal disputes.
The complete report, along with additional resources, limitations, and specialized considerations regarding the dataset, is available for download on the HPSO website at https://www.hpso.com/ptclaimreport.
