The financial stakes within the physical therapy profession have reached a new milestone, driven by a sharp upward trajectory in professional liability claim costs. 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 jumped by 20.3%, reaching $162,174.
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 comprehensive report sheds light on the evolving risk landscape confronting physical therapists, physical therapist assistants, and physical therapy practice owners. Beyond the rising average cost of claims, the data reveals a troubling shift in the severity of these legal matters. Specifically, the share of claims closing in the higher indemnity range of $250,000 to $749,999 has climbed from 9.3% to 13.7% since the previous dataset published in 2020.
The report provides a deep dive into the complex professional liability exposures facing the industry today. It explores critical areas of risk, including manual therapy techniques, patient monitoring protocols, patient injuries, practice-level claims, and licensure defense matters. By combining detailed case studies, expert analysis, and actionable risk management insights, the publication aims to help practitioners navigate an increasingly litigious healthcare environment.
Industry leaders point out that while physical therapy professionals remain deeply dedicated to providing high-quality, patient-centered care, the external environment in which they operate has grown notably more challenging. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, emphasized the pressures practitioners face in their day-to-day clinical environments.
“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,” Flynn said. She noted that the newly released report was specifically designed to provide physical therapists, physical therapist assistants, and practice owners with the necessary insights and strategic guidance to help minimize their unique professional liability exposures.
The report’s findings underscore the reality that clinical errors, patient miscommunications, or adverse treatment outcomes can quickly escalate into formal legal challenges or administrative board complaints. Licensure defense, in particular, remains a critical concern for practitioners whose livelihood depends on maintaining their professional credentials in good standing. As regulatory standards tighten and patient expectations shift, the margin for error in documentation, patient assessment, and treatment execution has narrowed considerably.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized the preventative value of understanding these trends. By analyzing the root causes behind historical claims, practitioners can adopt a more proactive posture toward risk mitigation.
“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 said. She added that the overarching goal of the report is to raise awareness regarding prevailing claim drivers, thereby enhancing risk management knowledge and ultimately supporting safer, higher-quality care for physical therapy professionals and their patients alike.
To build upon the release of the 5th edition report, HPSO announced plans to roll out a dedicated series of seven Physical Therapist Spotlights over the coming months. These spotlights will feature targeted resources and links designed to highlight risk control best practices across several vital operational areas, including proper clinical documentation, strategies for effective licensure defense, and the safe integration of emerging healthcare technology into everyday clinical workflows.
The data driving the Physical Therapy Professional Liability Claim Report: 5th Edition stems from a rigorous analysis conducted by CNA and HPSO as part of their ongoing, long-term commitment to professional education and risk awareness within the physical therapy community. The core dataset evaluates 497 closed professional liability claims that occurred between January 1, 2020, and December 31, 2025. This group includes claims involving physical therapists, physical therapist assistants, physical therapy practices, and other healthcare practitioners who provided services as employees of an insured physical therapy practice. Crucially, the analysis focuses specifically on claims that resulted in an indemnity payment of $10,000 or greater, establishing a clear baseline of significant financial loss.
Practitioners, practice owners, and healthcare administrators interested in reviewing the complete findings, methodological limitations, and expert recommendations can access the full report online through the HPSO resource portal at https://www.hpso.com/ptclaimreport.
