The financial and operational risks facing physical therapy professionals have escalated significantly over recent years, driven by rising claim costs, increasingly complex patient care environments, and mounting legal exposures. According to the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, the average total incurred cost for professional liability claims involving physical therapy professionals has experienced a sharp upward trajectory, jumping 20.3% to reach $162,174.
The comprehensive report, published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, sheds light on the multifaceted professional liability exposures currently confronting physical therapists, physical therapist assistants, and practice owners. Beyond examining overall financial trends, the publication provides an in-depth look at claim drivers, licensure defense matters, real-world case studies, professional analysis, and vital risk management insights designed to help practitioners navigate an increasingly hazardous legal and regulatory landscape.
Industry experts point to a shifting healthcare environment as a primary catalyst for these growing financial exposures. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that while physical therapy professionals remain deeply committed to delivering safe, effective care that helps patients function at their best, they are increasingly forced to practice in an environment marked by heightened complexity and evolving risks. According to Flynn, the new edition of the report was specifically designed to provide physical therapists, physical therapist assistants, and practice owners with the critical insights and actionable strategies necessary to help minimize their unique professional liability exposures.
A closer examination of the data underscores the severity of the financial climate facing the industry. The report highlights a notable shift in the severity of claims, particularly regarding higher-tier payouts. Specifically, the share of claims closing within the substantial $250,000 to $749,999 indemnity range has risen from 9.3% to 13.7% since the publication of the 2020 dataset. This upward migration of claim values demonstrates that when litigation does occur, the financial consequences for practitioners and practices are increasingly severe.
The underlying drivers of these claims span a wide array of clinical and operational areas. The findings indicate that professional liability risks are heavily concentrated in specific aspects of practice, with particular vulnerabilities related to manual therapy techniques, patient monitoring protocols, managing patient injuries, handling practice-level claims, and mounting adequate licensure defense. As physical therapy interventions become more advanced and aggressive to meet patient demands, the margin for error narrows, creating greater exposure to adverse events that can quickly escalate into formal legal disputes or administrative board complaints.
Underwriters and risk mitigation specialists emphasize that understanding these underlying risk factors is the first and most critical line of defense for practitioners seeking to protect their livelihoods and maintain high standards of patient care. Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized that by comprehensively understanding the specific factors and patterns that lead to claims, physical therapy professionals and practices are much better positioned to take proactive steps. According to Miller, these proactive measures can significantly help reduce overall risk and lower the chance of litigation, ultimately raising awareness of ongoing industry trends and claim drivers to enhance risk management knowledge and support safer care environments for both physical therapy professionals and their patients.
To help bridge the gap between risk awareness and practical application, HPSO has announced plans to roll out an extensive educational campaign in the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights, complete with direct links to targeted resources. These spotlights are intended to highlight risk control best practices across several critical operational areas, including proper clinical documentation, effective strategies for mounting a successful licensure defense, and the safe integration of emerging healthcare technology into daily practice.
The data underpinning the Physical Therapy Professional Liability Claim Report: 5th Edition represents a significant and rigorous research effort aimed at educating the physical therapy community. The general analysis featured in the publication encompasses 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. The dataset specifically captures claims that closed between January 1, 2020, and December 31, 2025—referred to as the 2026 dataset—and resulted in an indemnity payment of $10,000 or greater, subject to the specific limitations and considerations outlined within the full report.
As the healthcare sector continues to grapple with systemic shifts, regulatory pressures, and rising patient expectations, reports of this nature serve as a vital resource for practitioners striving to balance clinical excellence with sound risk management. By maintaining a clear-eyed view of where claims originate and how much they cost, the physical therapy profession can better fortify itself against the financial and legal uncertainties of modern practice.
For practitioners, practice owners, and industry stakeholders seeking a deeper understanding of these trends, the complete Physical Therapy Professional Liability Claim Report: 5th Edition is available for download on the HPSO website at https://www.hpso.com/ptclaimreport.
