The financial and legal landscape for physical therapists and physical therapy assistants is undergoing a turbulent shift, marked by a sharp escalation in the cost and severity of professional liability claims. According to the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, the average total cost incurred for professional liability claims involving physical therapy professionals has surged by 20.3% to reach $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 mounting professional liability exposures, claim trends, and licensure defense matters confronting physical therapy practices today. Beyond the headline-grabbing rise in average total incurred costs, the data points to a concerning upward migration in the severity of payouts. Most notably, the share of claims closing in the higher indemnity range of $250,000 to $749,999 has risen significantly from 9.3% to 13.7% when compared against the benchmark 2020 dataset.
Industry leaders emphasize that these rising figures reflect an increasingly complex operating environment for rehabilitation specialists. While practitioners remain deeply dedicated to helping patients recover, restore mobility, and improve their overall quality of life, the day-to-day realities of modern clinical practice expose them to a widening array of operational, clinical, and regulatory vulnerabilities.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that physical therapy professionals carry out their vital work in an atmosphere characterized by escalating complexity and evolving risk factors. Flynn explained that the newly published report was specifically developed to equip physical therapists, physical therapist assistants, and independent practice owners with actionable insights and strategic tools designed to minimize their unique professional liability exposures.
The publication arrives at a critical juncture for the physical therapy profession. Modern rehabilitation practices face multifaceted challenges that extend far beyond traditional patient care concerns. As detailed in the report, contemporary liability risks encompass a broad spectrum of clinical and administrative vulnerabilities, including potential complications arising from manual therapy techniques, patient monitoring protocols, unexpected physical injuries sustained during treatment sessions, practice-level administrative claims, and complex licensure defense proceedings that can threaten a clinician’s ability to practice.
Understanding these underlying claim drivers is essential for mitigating future litigation, according to risk management and underwriting experts. Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized that by gaining a clear, data-driven understanding of the precise factors that precipitate formal claims and legal actions, physical therapy professionals and practice administrators can implement proactive measures. These steps are vital for reducing overall risk profiles, curbing the likelihood of costly litigation, and fostering a safer clinical environment for both practitioners and the patients they serve.
To help bridge the gap between risk data and everyday clinical application, HPSO has announced plans to roll out an extensive educational initiative in the coming months. The organization will release a curated series of seven specialized resources known as Physical Therapist Spotlights. These forthcoming installments will feature direct links to practical risk control materials and best practices centered on critical operational areas, including clinical documentation standards, navigating complex licensure defense procedures, and managing the integration of emerging technologies within physical therapy practices.
The findings featured in the Physical Therapy Professional Liability Claim Report: 5th Edition are derived from an in-depth empirical analysis of 497 closed professional liability claims. This dataset specifically encompasses claims involving licensed physical therapists, physical therapist assistants, physical therapy group practices, and various other healthcare practitioners who provided professional services as employees of an insured physical therapy practice. The evaluation period covers claims closed between January 1, 2020, and December 31, 2025, that resulted in an indemnity payment of $10,000 or greater, establishing a robust statistical foundation for the 2026 dataset, subject to the report’s outlined limitations and methodological considerations.
As liability costs continue their upward trajectory and the regulatory landscape grows increasingly intricate, industry stakeholders hope the new report will serve as an indispensable resource for healthcare providers striving to balance clinical excellence with rigorous risk mitigation. Physical therapy professionals, practice owners, and allied healthcare administrators seeking to examine the complete findings, expert commentaries, case studies, and risk management recommendations can access and download the full report by visiting the official HPSO resource portal at hpso.com/ptclaimreport.
