The financial and operational risks facing the physical therapy profession have intensified significantly over recent years, driven by a sharp escalation in professional liability claim costs, according to a newly released comprehensive industry analysis. The findings underscore a rapidly evolving landscape where physical therapists, physical therapist assistants, and practice owners must navigate heightened exposures tied to manual therapy, patient monitoring, complex injuries, practice-level claims, and licensure defense matters.
The comprehensive findings are detailed in the newly published Physical Therapy Professional Liability Claim Report: 5th Edition, a joint publication released by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA. According to the report, the average total incurred cost for professional liability claims involving physical therapy professionals has increased by an alarming 20.3%, reaching $162,174.
Furthermore, the data reveals a troubling shift in the severity of these legal matters. The share of claims closing in the higher indemnity range of $250,000 to $749,999 has climbed notably from 9.3% to 13.7% since the publication of the previous dataset. This upward migration in payout sizes reflects not only the increasing complexity of patient care but also the rising costs associated with legal defense, medical inflation, and settlement demands within the modern healthcare litigation environment.
The report provides an in-depth examination of the professional liability exposures currently confronting physical therapy professionals and practices. By analyzing historical trends, emerging claim drivers, and licensure defense matters, the publication aims to equip practitioners with essential case studies, detailed analysis, and vital risk management insights designed to protect their professional standing and financial security.
Industry leaders emphasize that while the core mission of physical therapy professionals remains rooted in compassion and restorative care, the external environment has grown increasingly difficult to navigate. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that physical therapy professionals consistently demonstrate a deep commitment to delivering safe, effective care that helps patients function at their best. However, Flynn pointed out that they do so within an operational environment marked by increasing complexity and evolving risks. She explained that the new report was specifically 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 publication’s insights are drawn from rigorous empirical research and a comprehensive review of closed claims data. The general analysis featured in the Physical Therapy Professional Liability Claim Report: 5th Edition incorporates 497 closed professional liability claims. These cases involved physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided professional services as employees of an insured physical therapy practice. The analyzed claims all reached a final resolution between January 1, 2020, and December 31, 2025, and each resulted in an indemnity payment of $10,000 or greater, forming what is designated as the 2026 dataset, subject to specific reporting limitations and considerations.
For insurance underwriters and risk management specialists, identifying the root causes of litigation is paramount to reversing these negative trends. Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized the preventative value of understanding liability drivers. Miller stated that by thoroughly understanding the specific factors that lead to claims, physical therapy professionals and their respective practices can take proactive steps to help reduce operational risk and lower the overall chance of litigation. She added that the primary aim of the report is to raise awareness of prevailing industry trends and claim drivers, ultimately enhancing risk management knowledge and supporting safer, higher-quality care for physical therapy professionals and the patients who rely on them.
In response to the report’s findings and the complex risk environment they highlight, HPSO plans to roll out an extensive educational campaign in the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights. These forthcoming resources will include direct links to specialized materials designed to highlight risk control best practices across several critical operational areas, including proper clinical documentation, strategies for effective licensure defense, and the safe integration of emerging healthcare technologies into daily clinical practice.
The release of the 5th Edition report reaffirms the long-standing commitment of both CNA and HPSO to the ongoing education and professional development of the physical therapy community. By continuously monitoring litigation trends, evaluating indemnity payouts, and sharing actionable risk mitigation strategies, these organizations seek to empower practitioners to maintain the highest standards of patient safety while safeguarding their livelihoods against an increasingly litigious environment.
Physical therapy professionals, practice managers, and legal compliance officers seeking a deeper understanding of these trends can access the full findings. The complete Physical Therapy Professional Liability Claim Report: 5th Edition is currently available for download by visiting the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
