The financial and operational risks facing physical therapists and physical therapy practices have intensified significantly over recent years, according to a newly released comprehensive industry analysis. The Physical Therapy Professional Liability Claim Report: 5th Edition, published by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—in partnership with CNA, reveals that the average total incurred cost for professional liability claims involving physical therapy professionals has jumped by 20.3% to reach $162,174.
This upward trajectory in financial exposure highlights a shifting risk landscape for practitioners across the United States. Furthermore, the severity of these legal and professional challenges is underscored by an increase in high-cost settlements and judgments. Specifically, the share of claims closing within the substantial indemnity range of $250,000 to $749,999 has risen from 9.3% to 13.7% since the publication of the previous dataset.
Published jointly by CNA and HPSO as part of their ongoing commitment to educating and protecting physical therapy professionals, the report provides an in-depth examination of the professional liability exposures currently confronting the sector. The comprehensive document covers critical claim trends, licensure defense matters, detailed case studies, expert analysis, and actionable risk management insights designed to help practitioners navigate an increasingly complex operational environment.
Industry leaders emphasize that while the core mission of physical therapy remains focused on patient recovery and functional independence, the backdrop against which these services are delivered has grown markedly more challenging.
“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 findings underscore a variety of vulnerability points within daily clinical practice, pointing toward specific areas where risks frequently materialize into formal claims or licensure defense proceedings. According to the data, areas such as manual therapy techniques, patient monitoring protocols, injury management during sessions, broader practice-level claims, and the complexities of licensure defense continue to serve as significant drivers of professional liability exposure.
As healthcare delivery models shift and patient volumes fluctuate, physical therapy professionals find themselves managing a wider array of clinical presentations, often involving complex comorbidities. This clinical complexity, combined with heightened patient expectations and regulatory scrutiny, creates a scenario where minor oversights can escalate into major legal challenges.
“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.”
The general analysis compiled within the Physical Therapy Professional Liability Claim Report: 5th Edition is built upon a robust dataset of 497 closed professional liability claims. This research pool encompasses 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 between January 1, 2020, and December 31, 2025. To ensure the relevance of the findings to significant professional liability events, the dataset specifically focuses on claims that resulted in an indemnity payment of $10,000 or greater, establishing a clear picture of substantial risk events during this five-year period.
To help practitioners translate these data points into daily operational improvements, HPSO has announced plans to roll out an educational extension of the report in the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights. These forthcoming resources will feature direct links to tools and guidance highlighting risk control best practices, focusing heavily on foundational operational areas such as meticulous clinical documentation, proactive licensure defense preparation, and the integration of emerging healthcare technologies into clinical workflows.
The complete Physical Therapy Professional Liability Claim Report: 5th Edition is currently available for review and download through the HPSO official portal at https://www.hpso.com/ptclaimreport. Industry stakeholders, practice owners, and individual clinicians are encouraged to review the complete findings and associated limitations and considerations detailed within the report to better understand and mitigate their professional exposures.
