The financial and professional risks associated with practicing physical therapy have risen sharply over recent years, driven by escalating claim costs, higher indemnity payouts, and increasing vulnerabilities surrounding manual therapy, patient monitoring, and licensure defense. These critical insights emerge from the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, published jointly by Healthcare Providers Service Organization (HPSO)—a leading provider of professional liability insurance and part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, a major commercial property and casualty insurance company.
According to the comprehensive study, the average total incurred cost for professional liability claims involving physical therapy professionals has jumped by 20.3%, reaching $162,174. This substantial upward trend underscores a shifting legal and operational landscape for rehabilitation specialists. Furthermore, the severity of these claims is also increasing. The report notes that the share of claims closing within the substantial $250,000 to $749,999 indemnity range climbed from 9.3% to 13.7% when compared against the previous data cycle.
The newly published analysis examines professional liability exposures facing physical therapists, physical therapist assistants, and physical therapy practice owners. Beyond financial metrics, the document provides deep dives into emerging claim trends, licensure defense matters, detailed case studies, expert analysis, and actionable risk management insights designed to help practitioners navigate an increasingly litigious environment.
Industry leaders emphasize that while rehabilitation professionals strive to provide safe, high-quality care that maximizes patient mobility and function, they do so within an environment of growing clinical and administrative complexity. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that physical therapy professionals are deeply committed to delivering safe and effective care that helps patients function at their best. However, she pointed out that they currently practice in an environment marked by increasing complexity and evolving risks. Flynn explained that the newly released 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 of this 5th Edition report highlights an ongoing, multi-year commitment by CNA and HPSO to educating physical therapy professionals and enhancing patient safety across the continuum of care. The broad analysis and statistical findings compiled within the document are derived from an extensive examination of 497 closed professional liability claims. This dataset encompasses cases involving physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided services as employees of an insured physical therapy practice.
To ensure the relevance and timeliness of the findings, the analysis focuses strictly on claims that closed between January 1, 2020, and December 31, 2025, and which resulted in an indemnity payment of $10,000 or greater, collectively referred to as the 2026 dataset. By analyzing this specific window, the report captures the post-pandemic operational realities, shifting patient demographics, and changing treatment modalities that have influenced professional liability over the first half of the decade.
Mitigating these rising risks requires a proactive approach from both individual clinicians and practice leadership. Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized the importance of awareness and early intervention. Miller stated that 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. She added that the primary aim of the report is to raise awareness of prevailing trends and major claim drivers, thereby enhancing risk management knowledge and supporting safer, more reliable care for physical therapy professionals and the patients they serve.
To build upon the release of the comprehensive 5th Edition report, HPSO has announced plans to roll out a targeted educational initiative over the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights. These forthcoming resources will feature direct links to additional educational materials and tools designed to highlight risk control best practices. Key areas of focus for the spotlight series will include clinical documentation standards, strategies for effective licensure defense, and the safe integration of emerging technologies into daily clinical workflows.
The complete Physical Therapy Professional Liability Claim Report: 5th Edition is now available to the public and healthcare professionals. Interested parties, including practicing clinicians, practice administrators, and risk management professionals, can download the complete report by visiting the official HPSO resource page at https://www.hpso.com/ptclaimreport. Additional details, including specific report limitations, methodological considerations, and detailed statistical breakdowns, are fully outlined within the published text.
