The financial stakes within the physical therapy profession have escalated significantly over the last several years, driven by a combination of rising claim costs, increasingly complex patient needs, and broader legal exposures. 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 surged by 20.3% to reach $162,174.
Published jointly by Healthcare Providers Service Organization (HPSO)—which operates as part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, the comprehensive new report provides a detailed examination of the professional liability exposures currently facing physical therapy professionals, assistants, and practice owners. Beyond tracking overall financial inflation in claim severity, the study delves into specific risk areas such as manual therapy complications, patient monitoring challenges, physical injuries occurring during treatment, practice-level claims, and licensure defense matters. It also incorporates valuable case studies, in-depth data analysis, and practical risk management insights aimed at safeguarding both practitioners and the patients they serve.
The findings underscore a shifting landscape where clinical environments have grown markedly more demanding. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that while practitioners remain deeply dedicated to providing safe and effective care that maximizes patient function, they must do so amid mounting complexities.
"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," Flynn said. "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."
Among the most striking data points in the 5th Edition report is the noticeable shift toward higher-severity indemnity payouts. Since the publication of the previous dataset in 2020, the proportion of claims closing in the substantial indemnity range of $250,000 to $749,999 has risen from 9.3% to 13.7%. This movement toward costlier resolutions indicates that when adverse events do occur in physical therapy settings, their financial and legal repercussions are increasingly severe.
Industry experts emphasize that these figures should serve as a clear call to action for the rehabilitation community. By analyzing the root causes behind these professional liability claims, practitioners and clinic administrators can implement targeted safeguards to protect their practices and improve patient safety outcomes.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, highlighted the proactive value of the new data. "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," Miller said. "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 of these findings and translate them into actionable daily practices, HPSO has announced plans to roll out a specialized series of resources in the coming months. Specifically, the organization will release seven distinct Physical Therapist Spotlights containing direct links to risk control best practices. These educational installments will focus heavily on critical operational areas, including clinical documentation standards, strategies for effective licensure defense, and the safe integration of emerging technologies into modern physical therapy practice.
The comprehensive research underpinning the Physical Therapy Professional Liability Claim Report: 5th Edition represents a long-standing collaborative commitment by CNA and HPSO to ongoing professional education and risk mitigation within the rehabilitation sector. The core general analysis featured in the report is derived from an exhaustive examination of 497 closed professional liability claims. This dataset encompasses physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided services as employees of an insured physical therapy practice between January 1, 2020, and December 31, 2025. To ensure analytical focus on significant matters, the dataset specifically includes claims that resulted in an indemnity payment of $10,000 or greater, establishing a robust baseline for the 2026 dataset.
Physical therapy professionals, clinic owners, and healthcare administrators seeking a deeper understanding of these evolving liabilities can access the full publication and its accompanying analytical tools. The complete report is available for download directly through the Healthcare Providers Service Organization website at https://www.hpso.com/ptclaimreport.
