Professional liability claim costs for physical therapy professionals have escalated significantly, driven by mounting exposures related to manual therapy, patient monitoring, injuries, practice-level claims, and licensure defense issues. According to a newly released comprehensive industry analysis, the financial stakes for practitioners and healthcare facilities have reached unprecedented levels as the operational landscape grows increasingly complex.
The average total incurred for professional liability claims involving physical therapy professionals has risen by 20.3 percent to reach $162,174. Furthermore, the severity of these legal challenges is compounding, evidenced by a noticeable shift in the distribution of payouts. The share of claims closing in the substantial indemnity range between $250,000 and $749,999 has risen from 9.3 percent up to 13.7 percent since the publication of the previous dataset.
These critical findings form the core of the Physical Therapy Professional Liability Claim Report: 5th Edition, a newly published collaborative study. The report is published by Healthcare Providers Service Organization (HPSO), which operates as part of the Healthcare division of Aon Affinity—the affinity business of Aon plc—in partnership with CNA. Designed as an essential resource for the industry, the comprehensive document sheds light on the multifaceted professional liability exposures currently confronting physical therapy professionals and independent practices. It encompasses detailed claim trends, analysis of licensure defense matters, informative case studies, and vital risk management insights aimed at safeguarding practitioners.
Industry leaders emphasize that while the profession remains deeply dedicated to optimal patient outcomes, the modern practice environment introduces unique hazards. Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that physical therapy professionals are fundamentally committed to delivering safe, effective care that helps patients function at their best. However, she pointed out that they currently practice in an environment marked by increasing complexity and evolving risks. According to Flynn, the newly released report was specifically designed to provide physical therapists, physical therapist assistants, and practice owners with actionable insights and proven strategies to help minimize their unique professional liability exposures.
The publication arrives at a crucial juncture for the rehabilitation sector, where clinical demands and administrative burdens continue to intersect with legal accountabilities. By examining the underlying catalysts of recent litigation, risk mitigation experts hope to foster a culture of proactive safety across outpatient clinics, hospitals, and private practices nationwide.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, underscored the direct link between risk awareness and the reduction of legal conflict. By understanding the specific 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 explained. She added that the primary objective of the report is to raise awareness of prevailing trends and prominent claim drivers to enhance overall risk management knowledge and support safer, more secure care delivery for both physical therapy professionals and the patients they serve.
To further amplify the practical applications of the data, HPSO has announced plans to roll out a specialized educational initiative over the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights. These forthcoming installments will feature direct links to curated resources highlighting risk control best practices across several critical operational areas, including clinical documentation standards, comprehensive licensure defense strategies, and the integration of emerging technologies within therapeutic settings.
The empirical foundation of the Physical Therapy Professional Liability Claim Report: 5th Edition represents an ongoing, long-term commitment by CNA and HPSO to the continuous education and protection of the physical therapy community. The general analysis underpinning the publication incorporates data from 497 closed professional liability claims. This specific cohort encompasses physical therapists, physical therapist assistants, physical therapy practices, and various other healthcare practitioners who provided services as employees of an insured physical therapy practice. The dataset captures claims that officially closed between January 1, 2020, and December 31, 2025—referred to in the study as the 2026 dataset—that ultimately resulted in an indemnity payment of $10,000 or greater, subject to specific reporting limitations and analytical considerations outlined within the complete document.
Healthcare professionals, practice administrators, and legal advisors seeking a thorough examination of the data can access the complete findings. The comprehensive report is available for download directly through the Healthcare Providers Service Organization website at https://www.hpso.com/ptclaimreport.
