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, and injuries, as well as heightened exposure to practice-level claims and licensure defense matters. These critical trends are detailed in the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, which offers a comprehensive look at the evolving risk landscape for practitioners across the United States.
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 latest edition of the report underscores the multifaceted professional liability exposures currently facing physical therapists, physical therapist assistants, and practice owners. The publication combines rigorous data analysis, real-world case studies, and expert risk management insights to help practitioners navigate an increasingly complex operational environment.
According to the 2026 dataset featured in the report, the average total incurred cost for professional liability claims involving physical therapy professionals has risen by 20.3%, reaching $162,174. This upward trajectory in financial severity is further illustrated by the distribution of payouts. The share of claims closing within the substantial $250,000 to $749,999 indemnity range experienced a notable increase, rising from 9.3% in the previous 2020 dataset to 13.7% in the current report. These figures reflect a broader trend of escalating litigation costs and higher settlement values within the healthcare liability sector.
Industry leaders emphasize that these rising figures do not paint a picture of declining clinical dedication, but rather highlight the growing complexities of modern clinical practice. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that physical therapy professionals consistently demonstrate a deep commitment to delivering safe, effective care that helps patients function at their highest potential. However, Flynn pointed out that they do so within an environment marked by increasing complexity and evolving risks. She explained that the newly released report was specifically designed to provide physical therapists, physical therapist assistants, and practice owners with the essential insights and strategies needed to minimize their unique professional liability exposures.
The comprehensive analysis compiled in the report encompasses 497 closed professional liability claims. These cases involved 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. To be included in the primary dataset, each claim had to result in an indemnity payment of $10,000 or greater, ensuring that the findings focus on significant legal and financial events within the profession.
By examining the root causes and contributing factors of these legal challenges, industry experts believe that practitioners can better insulate themselves against future litigation. Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized the preventative value of the research. She stated that by understanding the precise factors that lead to claims, physical therapy professionals and practices can take proactive steps to help reduce risk and lower the overall chance of litigation. Miller 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, higher-quality care for physical therapy professionals and their patients alike.
The release of the 5th Edition report is part of an ongoing, long-term commitment by CNA and HPSO to educate the physical therapy community and provide actionable resources. To build upon the findings published in the main report, HPSO has announced plans to roll out a series of seven Physical Therapist Spotlights over the coming months. These upcoming releases will include direct links to specialized resources designed to highlight risk control best practices across several critical operational areas, including proper clinical documentation, strategies for effective licensure defense, and the safe integration of emerging technologies into everyday practice.
The complete Physical Therapy Professional Liability Claim Report: 5th Edition is currently available to healthcare professionals, practice administrators, and risk management specialists. Interested parties can access and download the full document directly by visiting the HPSO website at https://www.hpso.com/ptclaimreport.
