The financial and professional risks facing physical therapists and physical therapy assistants have escalated sharply over the last several years, according to a comprehensive new industry analysis. A newly released report indicates that professional liability claim costs for physical therapy professionals have risen significantly, underscoring a growing array of vulnerabilities that range from manual therapy complications and patient monitoring lapses to complex practice-level claims and licensure defense matters.
The findings come from the newly published Physical Therapy Professional Liability Claim Report: 5th Edition, a joint publication 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 20.3%, reaching $162,174.
Furthermore, the severity of these legal matters is trending upward. The report highlights that 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. This upward movement in both average incurred costs and high-severity payout brackets reflects an increasingly litigious environment and higher financial stakes for practitioners and clinic owners alike.
Published as part of an ongoing commitment to educating physical therapy professionals on risk mitigation and patient safety, the report offers a detailed examination of current professional liability exposures. It incorporates professional case studies, rigorous data analysis, and expert risk management insights designed to help practitioners navigate an evolving healthcare landscape.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that the pressures facing rehabilitation specialists are mounting as clinical environments grow increasingly complex.
"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 Flynn. "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 general analysis driving the Physical Therapy Professional Liability Claim Report: 5th Edition is built on a substantial dataset. It encompasses 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 data spans a six-year period from January 1, 2020, through December 31, 2025, capturing only those matters that resulted in an indemnity payment of $10,000 or greater.
As clinical practices adapt to new technologies, shifting regulatory requirements, and changing patient demographics, liability drivers are shifting as well. Industry experts emphasize that understanding these underlying factors is essential for preventing adverse legal outcomes and maintaining high standards of clinical care.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, underscored the practical value of the report’s findings for everyday clinical practice.
"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 Miller. "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 help practitioners translate these insights into daily operational improvements, HPSO plans to roll out an educational initiative over the coming months. The organization will release a series of seven Physical Therapist Spotlights, each featuring direct links to valuable resources. These spotlights will highlight risk control best practices across critical operational areas, including documentation standards, strategies for effective licensure defense, and the safe integration of emerging healthcare technologies into clinical workflows.
The complete Physical Therapy Professional Liability Claim Report: 5th Edition is currently available to healthcare professionals, practice administrators, and legal analysts. Interested parties can download the full report by visiting the official HPSO resource page at https://www.hpso.com/ptclaimreport.
