The financial stakes within the physical therapy profession are climbing significantly, driven by a sharp increase in professional liability claim costs, growing risks associated with manual therapy, patient monitoring, injuries, practice-level claims, and complex licensure defense matters. These critical trends and challenges are detailed in the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, a comprehensive industry analysis published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA.
According to the newly published dataset, the average total incurred cost for professional liability claims involving physical therapy professionals has experienced a substantial upward trajectory, increasing by 20.3% to reach $162,174. Furthermore, the severity of these legal actions is escalating. The share of claims closing within the substantial indemnity range of $250,000 to $749,999 has risen noticeably from 9.3% to 13.7% when compared against the previous dataset from 2020.
This extensive report sheds vital light on the evolving landscape of professional liability exposures currently facing physical therapists, physical therapist assistants, and physical therapy practice owners. Beyond financial metrics, the publication offers in-depth claim trends, examinations of licensure defense matters, detailed case studies, professional analysis, and actionable risk management insights designed to help practitioners navigate an increasingly litigious environment.
Industry leaders emphasize that while the core mission of physical therapy remains focused on patient recovery and functional independence, the operating environment has fundamentally shifted. Physical therapy professionals are deeply 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. This report was purposely designed to provide physical therapists, physical therapist assistants, and practice owners with deep insights and strategic approaches to help minimize their unique professional liability exposures.
The publication of this data serves as an educational resource to help practitioners identify vulnerable areas in their daily clinical workflows. 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. The ultimate goal of releasing these comprehensive trends and claim drivers is to enhance risk management knowledge and support safer, higher-quality care for physical therapy professionals and the patients they serve.
To support ongoing education and risk mitigation following the release of the report, HPSO has announced plans to roll out a series of seven distinct Physical Therapist Spotlights in the coming months. These spotlights will feature direct links to specialized resources highlighting risk control best practices. Key focal points of these upcoming educational materials will include vital topics such as clinical documentation standards, strategies for effective licensure defense, and the safe integration of emerging technologies into clinical practice.
The findings featured in the Physical Therapy Professional Liability Claim Report: 5th Edition represent an ongoing, collaborative commitment by CNA and HPSO to educate and protect physical therapy professionals across the healthcare sector. The foundational data for the general analysis encompasses 497 closed professional liability claims. This dataset specifically covers claims 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 between January 1, 2020, and December 31, 2025. Crucially, the dataset is restricted to claims that resulted in an indemnity payment of $10,000 or greater, forming the basis of what is designated as the 2026 dataset, subject to specific reporting limitations and analytical considerations outlined within the full text.
Physical therapy professionals, practice administrators, and legal compliance officers seeking a deeper understanding of these liability shifts can access the complete findings. The full Physical Therapy Professional Liability Claim Report: 5th Edition is available for download directly through the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
