The financial stakes in modern physical therapy have reached historic highs, according to a comprehensive new industry analysis. Professional liability claim costs for physical therapy professionals have escalated significantly, underscoring an increasingly complex operational environment marked by growing risks related to manual therapy, patient monitoring, physical injuries, practice-level claims, and licensure defense matters.
The findings are detailed in the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA. The report offers an in-depth examination of the professional liability exposures currently facing physical therapy professionals and private practices, complete with detailed case studies, expert analysis, and actionable risk management insights.
According to the report, the average total incurred cost for professional liability claims involving physical therapy professionals has increased by 20.3% to reach $162,174. Furthermore, the severity of these legal matters is trending upward. The share of claims closing in the substantial indemnity range between $250,000 and $749,999 has risen from 9.3% to 13.7% when compared against data from the previous 2020 dataset. This shift indicates that when legal challenges arise for physical therapy providers, they are increasingly carrying higher financial penalties and requiring more extensive legal defense resources.
Industry leaders emphasize that these rising figures reflect an operational landscape that demands heightened vigilance from practitioners at every level of care delivery.
"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 publication is built upon a rigorous analysis of real-world claims 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 closed between January 1, 2020, and December 31, 2025, and specifically focuses on those matters that resulted in an indemnity payment of $10,000 or greater, referred to in the study as the 2026 dataset.
By examining these closed claims, risk management experts aim to unpack the underlying drivers behind patient grievances and administrative disciplinary actions. The report highlights how various clinical interventions, such as manual therapy techniques, demand precise execution, comprehensive patient assessment, and continuous monitoring to prevent adverse events or accidental injuries during rehabilitation sessions. Beyond direct patient care errors, the findings also illuminate vulnerabilities at the practice level, including operational oversights and the growing frequency and complexity of licensure defense proceedings that can threaten a clinician’s ability to practice.
Risk mitigation experts note that awareness is the first line of defense against litigation and administrative scrutiny. Understanding where and why claims originate allows clinical teams to adopt safer practices and fortify their daily workflows against common pitfalls.
"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 extend the reach of these insights beyond the initial report, HPSO has announced plans to roll out a series of seven specialized resources known as Physical Therapist Spotlights over the coming months. These upcoming releases will feature direct links to educational tools and risk control best practices targeting critical operational areas, including proper clinical documentation standards, strategies for effective licensure defense, and the safe integration of emerging technologies into contemporary physical therapy practice.
The release of the Physical Therapy Professional Liability Claim Report: 5th Edition underscores a long-term, ongoing commitment by both CNA and HPSO to educational outreach and professional support for the rehabilitation community. By continuously analyzing closed claims and sharing lessons learned with frontline clinicians and practice owners, the organizations strive to foster a culture of safety that protects both healthcare providers and the patients who rely on their expertise.
Physical therapists, physical therapist assistants, practice owners, and other stakeholders seeking a comprehensive understanding of the current liability landscape can access the complete study. The full Physical Therapy Professional Liability Claim Report: 5th Edition is available for download directly through the HPSO website at https://www.hpso.com/ptclaimreport.
