The financial stakes within the physical therapy profession have climbed noticeably over recent years, driven by a sharp escalation in the cost and complexity of professional liability claims. 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% to $162,174.
The comprehensive report, published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, sheds light on the evolving risk landscape that physical therapists, physical therapist assistants, and practice owners must navigate in their day-to-day operations. Beyond tracking average financial payouts, the latest data reveals that severe legal exposures are becoming more common. Notably, the share of claims closing in the higher-tier indemnity range of $250,000 to $749,999 has climbed from 9.3% to 13.7% since the publication of the previous dataset.
Industry leaders point out that these rising numbers reflect an environment where practitioners face increasing professional complexities. Physical therapy professionals dedicate themselves to delivering safe, effective care that helps patients restore mobility, manage chronic conditions, and function at their highest possible capacity. However, the legal and regulatory ecosystems surrounding healthcare delivery have grown progressively intricate.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that the report is specifically engineered to address these modern challenges. Flynn emphasized that physical therapy professionals practice in an environment marked by evolving risks and that the new publication aims to provide practitioners, assistants, and practice owners with actionable insights and strategies designed to minimize their unique professional liability exposures.
The publication arrives at a crucial time for the rehabilitation sector, offering a deep dive into the primary professional liability exposures facing the industry. Alongside financial trend analyses, the 5th Edition of the report incorporates detailed case studies, expert commentary, and critical risk management insights. These resources are designed to help clinical staff and practice administrators identify vulnerabilities before they manifest into formal litigation or licensing board complaints.
A core component of the report’s value lies in its empirical foundation. The general analysis underpinning the 5th Edition incorporates data from 497 closed professional liability claims. These cases involve physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided services as employees of an insured physical therapy practice. To maintain a focus on high-impact events, the dataset specifically examines claims finalized between January 1, 2020, and December 31, 2025, that resulted in an indemnity payment of $10,000 or greater. This body of information forms what the organizations designate as the 2026 dataset.
Insurance and risk underwriting experts stress that understanding the underlying mechanisms of these legal challenges is the most effective defense for clinical providers. Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized the preventative value of the research. Miller noted that by closely examining the specific factors that trigger claims, physical therapy professionals and practice administrators can implement proactive measures to reduce overall risk and lower the probability of expensive litigation. According to Miller, the primary objective of the report is to elevate awareness regarding prevailing industry trends and claim drivers, thereby enhancing risk management knowledge and supporting safer, higher-quality care for patients.
The release of the report marks the beginning of an extended educational campaign by the sponsoring organizations. In the coming months, HPSO is scheduled to roll out a specialized series of seven Physical Therapist Spotlights. These forthcoming releases will feature direct links to educational resources that highlight risk control best practices. Key areas of focus for the spotlight series will include documentation standards, defense strategies for professional licensure matters, and the integration and safe utilization of emerging healthcare technologies within clinical workflows.
This ongoing educational initiative underscores a long-standing partnership between CNA and HPSO focused on professional risk mitigation and loss control within the physical therapy community. By translating complex claims data into accessible, practical takeaways, the organizations continue to support the professional growth and legal resilience of therapists nationwide.
Physical therapy professionals, practice managers, and legal compliance officers seeking a thorough examination of the current liability environment can access the complete findings. The Physical Therapy Professional Liability Claim Report: 5th Edition is available for download directly through the HPSO website, providing the rehabilitation sector with an essential reference tool for the years ahead.
