The financial and operational risks facing physical therapy professionals have escalated significantly over recent years, according to a comprehensive new industry analysis. The Physical Therapy Professional Liability Claim Report: 5th Edition, recently published by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, an affinity business of Aon plc—in collaboration with CNA, reveals a sharp upward trajectory in professional liability claim costs, pointing to growing vulnerabilities tied to manual therapy, patient monitoring, complex injuries, practice-level claims, and licensure defense.
According to the newly released dataset, the average total incurred cost for professional liability claims involving physical therapy professionals has risen by 20.3%, reaching $162,174. This substantial increase underscores a broader trend of escalating severity within the sector. Furthermore, the share of claims closing in the higher indemnity bracket—specifically between $250,000 and $749,999—has experienced a notable expansion, climbing from 9.3% to 13.7% when compared against data from the previous 2020 dataset. These figures reflect not only the rising costs associated with medical malpractice and professional negligence litigation but also the increasing complexity of cases brought against physical therapists, physical therapist assistants, and practice owners alike.
The report serves as a detailed examination of the professional liability exposures currently navigating the modern healthcare landscape. It provides a thorough overview of prevailing claim trends, licensure defense matters, detailed case studies, expert analysis, and actionable risk management insights designed to help practitioners safeguard their practices and maintain high standards of patient care.
Industry leaders emphasize that the modern practice environment presents unique hurdles that demand heightened vigilance from rehabilitation specialists. 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 maximizes patient functionality. However, she pointed out that these practitioners are operating within an increasingly complex ecosystem defined by evolving risks. Flynn explained that the newly released report was specifically developed to equip physical therapists, physical therapist assistants, and practice owners with the necessary insights and strategic frameworks to help minimize their unique professional liability exposures in an unpredictable legal climate.
The findings arrive at a critical juncture for the allied health sector, where patient volumes, regulatory demands, and technological integration continue to transform daily clinical workflows. As practitioners manage diverse patient populations—ranging from geriatric individuals with delicate comorbidities to high-performance athletes undergoing rigorous rehabilitation—the potential for adverse events, misunderstandings, and subsequent legal challenges has grown. Underwriters and risk management specialists stress that understanding the root causes of litigation is the first line of defense for clinical practices striving to protect their operational continuity and professional reputations.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, highlighted the proactive measures that practitioners can adopt in light of the report’s findings. By deeply understanding the underlying factors that consistently lead to formal claims, physical therapy professionals and practice organizations can implement targeted steps to mitigate risk and substantially lower the likelihood of facing protracted litigation. Miller added that the overarching goal of the report is to elevate awareness surrounding prevailing trends and primary claim drivers, thereby enhancing risk management knowledge across the board and ultimately fostering safer, more reliable care environments for physical therapy professionals and the patients they serve.
To further support the rehabilitation community in navigating these heightened risks, HPSO has announced plans to roll out an educational series in the coming months. The forthcoming initiative will feature a series of seven distinct Physical Therapist Spotlights, each accompanied by direct links to valuable resources. These spotlights are designed to highlight risk control best practices across several critical operational domains, including proper clinical documentation standards, strategies for effective licensure defense, and the safe integration of emerging technologies within physical therapy practices.
The findings and analyses compiled within the Physical Therapy Professional Liability Claim Report: 5th Edition represent an ongoing, long-term commitment by CNA and HPSO to the continuous education and professional support of the physical therapy community. The overarching statistical analysis featured in the report is built upon a robust sample size, encompassing 497 closed professional liability claims. This dataset specifically includes 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. To ensure analytical focus, the dataset is restricted to claims that resulted in an indemnity payment of $10,000 or greater, establishing the foundation for what is referred to in the report as the 2026 dataset, subject to standard reporting limitations and operational considerations.
As liability costs continue their upward climb and the legal landscape surrounding healthcare delivery grows increasingly intricate, industry stakeholders hope that the comprehensive insights provided in the latest HPSO and CNA report will serve as an essential roadmap for practitioners seeking to fortify their operations against emerging professional liabilities. Physical therapy professionals, assistants, and practice owners interested in reviewing the complete findings, analytical breakdowns, and associated risk mitigation strategies can access the full report online through the official HPSO resource portal at https://www.hpso.com/ptclaimreport.
