The financial and professional risks facing physical therapy practitioners have escalated significantly over recent years, driven by rising claim costs, increasingly complex patient care environments, and growing exposures related to manual therapy, clinical monitoring, patient injuries, practice-level claims, and licensure defense matters.
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 risen by 20.3 percent, reaching $162,174. Furthermore, the data reveals that the severity of these legal challenges is also growing. The share of claims closing in the higher indemnity range of $250,000 to $749,999 has increased from 9.3 percent to 13.7 percent since the publication of the previous dataset in 2020.
The comprehensive report was published jointly by Healthcare Providers Service Organization (HPSO), a prominent division of Aon Affinity—the affinity business of Aon plc—and CNA. Designed to serve as a critical resource for the industry, the publication highlights the evolving professional liability exposures facing physical therapy professionals and independent practices. It provides an in-depth look at prevailing claim trends, licensure defense matters, detailed case studies, expert analysis, and actionable risk management insights intended to help practitioners navigate an increasingly litigious landscape.
Industry experts point out that the modern practice environment requires clinicians to balance high standards of patient care with heightened administrative and legal vigilance. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, emphasized the dedication of practitioners while acknowledging the mounting pressures they face in their daily clinical routines.
"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. "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 findings underscore the reality that even highly skilled practitioners are vulnerable to legal challenges when patient outcomes do not meet expectations or when procedural, documentation, or communication errors occur during the course of treatment. The data compiled in the 5th edition of the report aims to demystify these legal trends and provide a clearer picture of where vulnerabilities lie within clinical practices.
Underwriting professionals stress that awareness is one of the most effective tools for mitigating legal risk before it transforms into formal litigation or a licensing board complaint. Crystal Miller, RPLU, CPCU, underwriting director at CNA, noted that understanding the root causes of claims empowers clinicians to implement proactive safeguards.
"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. "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 extend the reach and impact of the report’s findings, HPSO has announced plans to roll out a specialized educational initiative in the coming months. The organization will release a series of seven Physical Therapist Spotlights, each accompanied by direct links to valuable resources. These spotlights will highlight risk control best practices centered on critical operational and clinical topics, including thorough documentation standards, strategies for effective licensure defense, and the safe integration of emerging healthcare technology into physical therapy practices.
The dataset underpinning the Physical Therapy Professional Liability Claim Report: 5th Edition represents an ongoing, long-term commitment by CNA and HPSO to educate and protect physical therapy professionals across the United States. The general analysis featured in the report is derived from an exhaustive examination of 497 closed professional liability claims. This dataset encompasses 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—referred to as the 2026 dataset. To be included in the statistical analysis, each of these closed claims had to result in an indemnity payment of $10,000 or greater, ensuring that the report focuses on substantive legal and financial matters.
Healthcare professionals, practice owners, and risk management specialists seeking a comprehensive understanding of the current legal environment can access the full publication. The complete Physical Therapy Professional Liability Claim Report: 5th Edition is available for download by visiting the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
