The financial and legal landscape for physical therapy professionals has grown increasingly complex and costly, according to a newly released comprehensive industry analysis. A new report published by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc, alongside CNA—indicates that professional liability claim costs for physical therapy professionals have risen significantly. The findings highlight mounting exposures and risks related to manual therapy, patient monitoring, physical injuries, practice-level claims, and licensure defense matters across the United States.
According to the Physical Therapy Professional Liability Claim Report: 5th Edition, the average total incurred cost for professional liability claims involving physical therapy professionals has increased by 20.3% to reach $162,174. Furthermore, the severity of these legal matters is shifting upward. The share of claims closing in the higher indemnity range, specifically between $250,000 and $749,999, has climbed from 9.3% in the previous dataset to 13.7% in the current evaluation period. This notable upward trajectory underscores the escalating financial stakes involved when physical therapy care results in adverse patient outcomes, regulatory scrutiny, or formal legal action.
Published jointly by CNA and HPSO, the report serves as a vital resource designed to illuminate the professional liability exposures facing physical therapists, physical therapist assistants, and practice owners alike. In addition to high-level claim trends and licensure defense matters, the publication provides detailed case studies, expert analysis, and actionable risk management insights intended to help practitioners navigate an increasingly litigious healthcare environment.
Industry leaders emphasize that the report is rooted in a shared commitment to supporting safe, high-quality patient care while protecting practitioners from unforeseen liabilities. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that physical therapy professionals dedicate their careers to delivering safe and effective interventions that help patients restore function and improve their quality of life. However, Flynn pointed out that these clinicians increasingly practice within an environment marked by heightened complexity and evolving clinical and operational risks. She explained that the newly released report was specifically developed to provide physical therapists, physical therapist assistants, and practice owners with the critical insights and strategies necessary to help minimize their unique professional liability exposures.
The comprehensive analysis is drawn from an extensive examination of 497 closed professional liability claims. This dataset encompasses cases 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 a focus on substantial legal matters, the research specifically evaluates claims that resulted in an indemnity payment of $10,000 or greater, establishing a clear baseline for significant professional liability events during this five-year window.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized the practical value of the data for everyday clinical practice. Miller stated that by thoroughly understanding the underlying factors and systemic issues that lead to claims, physical therapy professionals and practice owners can take proactive, informed steps to help reduce overall risk and lower the probability of costly litigation. She added that the overarching goal of the report is to raise vital awareness regarding prevailing industry trends and primary claim drivers, ultimately enhancing risk management knowledge and supporting safer, more secure care delivery for physical therapy professionals and the patients they serve.
The release of the 5th Edition report is part of a broader, sustained educational initiative by the sponsoring organizations. In the coming months, HPSO plans to roll out a specialized series of seven Physical Therapist Spotlights. These upcoming releases will feature direct links to supplemental resources designed to highlight risk control best practices across several critical operational areas, including clinical documentation standards, licensure defense strategies, and the integration of emerging healthcare technologies into daily practice.
The complete Physical Therapy Professional Liability Claim Report: 5th Edition, along with its comprehensive data analysis, detailed case studies, and limitations and considerations regarding the underlying dataset, is publicly available for download on the HPSO website at https://www.hpso.com/ptclaimreport.
