The financial and operational risks facing the physical therapy profession have intensified significantly over recent years, according to a newly released comprehensive industry analysis. A fresh report published by Healthcare Providers Service Organization (HPSO)—operating as part of the Healthcare division of Aon Affinity, an affinity business of Aon plc—in partnership with CNA, shows that the average total incurred cost for professional liability claims involving physical therapy professionals has risen by 20.3%, reaching $162,174.
The findings are detailed within the newly launched Physical Therapy Professional Liability Claim Report: 5th Edition, which examines the evolving landscape of professional liability exposures, claim trends, and licensure defense matters facing physical therapists, physical therapist assistants, and practice owners alike. Alongside these cost escalations, the report underscores a notable shift in the severity of payouts. Specifically, the share of claims closing within the higher indemnity range of $250,000 to $749,999 has climbed from 9.3% to 13.7% since the evaluation of the previous dataset.
Industry leaders point out that these figures reflect a progressively complex and demanding practice environment. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, emphasized the dedication of practitioners while acknowledging the shifting landscape of risk. Physical therapy professionals are consistently committed to delivering safe, effective care that helps patients function at their best, Flynn noted. However, she added that they currently practice in an environment marked by increasing complexity and evolving risks, making educational resources and targeted strategies essential for minimizing unique professional liability exposures.
The comprehensive report captures a wide array of professional liability exposures and risk management insights designed to help practitioners navigate these challenges. By examining real-world case studies and detailed claims analysis, the publication seeks to illuminate vulnerable areas in daily clinical practice, including issues related to manual therapy, patient monitoring, accidental injuries during treatment sessions, practice-level claims, and complex licensure defense matters.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, stressed the importance of proactive risk mitigation in light of the new data. By understanding the underlying 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 stated. She explained that the primary aim of the report is to raise awareness of emerging trends and prominent claim drivers, thereby enhancing risk management knowledge and ultimately supporting safer, higher-quality care for physical therapy professionals and the patients they serve.
To build upon the release of the 5th edition report, HPSO has announced plans to roll out a specialized series of seven Physical Therapist Spotlights over the coming months. These upcoming spotlights will feature direct links to a variety of educational resources and risk control best practices. Key areas of focus for the series will include critical operational topics such as proper clinical documentation, navigating licensure defense proceedings, and managing the emerging legal and ethical challenges associated with new healthcare technology.
The underlying data and general analysis compiled within the Physical Therapy Professional Liability Claim Report: 5th Edition represent a long-standing, ongoing commitment by CNA and HPSO to the continuous education and professional support of the physical therapy community. The current dataset—referred to in the publication as the 2026 dataset—is derived from a thorough examination of 497 closed professional liability claims. These cases involve 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, resulting in an indemnity payment of $10,000 or greater, subject to the specific report limitations and considerations.
As clinical environments continue to evolve alongside regulatory changes and technological advancements, industry stakeholders hope that the insights provided by HPSO and CNA will serve as a vital tool for risk reduction and clinical excellence. Physical therapy professionals, practice owners, and allied healthcare providers seeking to access the complete findings, expert analyses, and comprehensive risk management strategies can download the full report by visiting the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
