The financial stakes within the physical therapy profession have reached a critical juncture, as a newly released national analysis reveals that professional liability claim costs have climbed significantly. The findings point to a challenging operational landscape characterized by escalating risks associated with manual therapy, patient monitoring, patient injuries, practice-level claims, and licensure defense proceedings.
According to the Physical Therapy Professional Liability Claim Report: 5th Edition, the average total incurred cost for professional liability claims involving physical therapy professionals has increased by 20.3%, reaching $162,174. Furthermore, the severity of these legal matters is intensifying. The share of claims closing in the substantial $250,000 to $749,999 indemnity range has expanded notably, rising from 9.3% to 13.7% since the evaluation of the previous dataset.
The comprehensive report was published jointly by Healthcare Providers Service Organization (HPSO)—operating as part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA. By examining professional liability exposures, claim trends, and licensure defense matters alongside detailed case studies, analysis, and risk management insights, the publication provides an extensive overview of the vulnerabilities currently facing physical therapy professionals and practice owners alike.
Industry leaders emphasize that the report arrives at a crucial time for practitioners navigating an increasingly complex clinical environment. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted the dedication of practitioners while acknowledging the shifting nature of modern practice. Physical therapy professionals are deeply committed to delivering safe, effective care that helps patients function at their best, Flynn observed, yet they currently practice in an environment marked by increasing complexity and evolving risks. She explained that the newly published 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 analysis is grounded in a rigorous examination of historical data. The general analysis encompasses 497 closed professional liability claims involving physical therapists, physical therapist assistants, physical therapy practices, and other healthcare practitioners providing services as employees of an insured physical therapy practice. The dataset captures claims that concluded between January 1, 2020, and December 31, 2025, and that resulted in an indemnity payment of $10,000 or greater, which is referred to in the research as the 2026 dataset.
Insurance and underwriting experts stress that awareness and proactive measures are vital for mitigating these rising exposures. Crystal Miller, RPLU, CPCU, underwriting director at CNA, underscored the importance of leveraging data-driven insights to prevent litigation before it starts. 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, Miller stated. She added that the primary aim of the report is to raise awareness of prevailing trends and claim drivers to enhance risk management knowledge and support safer care for both physical therapy professionals and the patients they serve.
In response to the complex findings detailed in the fifth edition of the report, HPSO plans to roll out an educational initiative in the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights. These forthcoming installments will feature direct links to educational resources designed to highlight risk control best practices across critical operational areas, including clinical documentation, licensure defense strategies, and the integration of emerging technology within clinical workflows.
The publication of the Physical Therapy Professional Liability Claim Report: 5th Edition underscores a continuous, long-term commitment by CNA and HPSO to the ongoing education and professional protection of the physical therapy community. By continuously analyzing closed claims and identifying emerging patterns of liability, the organizations seek to equip practitioners with the knowledge required to safeguard their practices and maintain high standards of patient safety.
Practitioners, practice owners, and healthcare administrators seeking a deeper understanding of these liability trends and risk mitigation strategies can access the complete report directly through the HPSO website at https://www.hpso.com/ptclaimreport.
