The financial and professional risks facing physical therapists and physical therapy assistants have escalated significantly over recent years, according to a newly released comprehensive industry analysis. The Physical Therapy Professional Liability Claim Report: 5th Edition, published jointly by Healthcare Providers Service Organization (HPSO) and CNA, reveals a sharp upward trajectory in both the total cost of professional liability claims and the severity of payouts involving physical therapy professionals and practice groups.
According to the data compiled in the newly released report, the average total incurred cost for professional liability claims involving physical therapy professionals has risen by 20.3%, reaching $162,174. This substantial financial jump underscores a changing operational landscape for rehabilitation specialists. Furthermore, the report points to a concerning shift in the distribution of claim payouts. The share of claims closing in the higher-severity indemnity range—specifically between $250,000 and $749,999—has experienced a notable increase, rising from 9.3% in previous datasets to 13.7% in the current findings.
Published by HPSO, which operates as part of the Healthcare division of Aon Affinity (the affinity business of Aon plc), in partnership with CNA, the report offers an in-depth examination of the professional liability exposures currently facing the physical therapy sector. Beyond raw financial data, the publication provides comprehensive insights into claim trends, licensure defense matters, detailed case studies, expert analysis, and valuable risk management strategies designed to help practitioners navigate an increasingly litigious environment.
Industry leaders emphasize that the findings are not merely a reflection of rising costs across the broader healthcare litigation landscape, but also point to specific clinical and operational vulnerabilities within physical therapy practice.
“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 comprehensive report sheds light on several core areas where liability risks are most pronounced, highlighting growing exposures related to manual therapy techniques, patient monitoring protocols, physical injuries sustained during treatment sessions, practice-level claims, and complex licensure defense proceedings. As the scope of practice for physical therapists continues to expand and patient volumes fluctuate across various healthcare settings, practitioners are encountering multifaceted legal and professional challenges that require heightened awareness and proactive risk mitigation.
The dataset analyzed in the fifth edition provides a robust cross-section of recent legal and administrative challenges within the profession. The general analysis 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 evaluation focuses specifically on claims that closed between January 1, 2020, and December 31, 2025, and that resulted in an indemnity payment of $10,000 or greater, establishing a clear baseline for understanding modern malpractice and professional liability trends in the specialty.
Insurance and underwriting experts note that analyzing these closed claims is vital for educating the workforce and preventing future litigation. By examining the precise sequence of events, clinical decision-making errors, or communication breakdowns that preceded formal legal action, practices can implement targeted safeguards to protect both their staff and their patients.
“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.”
To help practitioners translate the report’s extensive data into actionable daily habits, HPSO plans to roll out a series of seven specialized resources in the coming months. Known as the Physical Therapist Spotlights, these upcoming releases will feature direct links to educational materials and risk control best practices. The planned topics will address critical operational vulnerabilities, including thorough documentation practices, strategies for effective licensure defense, and the safe integration of emerging technologies into modern rehabilitation care.
The release of the fifth edition of the report reinforces a long-standing commitment by CNA and HPSO to ongoing professional education and risk awareness within the physical therapy community. By regularly tracking shifts in claim frequency, severity, and underlying clinical drivers, the organizations aim to equip individual practitioners and practice owners with the empirical insights necessary to sustain high standards of patient care while safeguarding their professional livelihoods against rising legal liabilities.
Physical therapists, physical therapist assistants, practice owners, and other interested healthcare stakeholders can access and download the complete Physical Therapy Professional Liability Claim Report: 5th Edition by visiting the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
