The financial and legal landscape for physical therapy professionals has grown increasingly perilous, according to a comprehensive new industry analysis. Professional liability claim costs for physical therapy providers have surged significantly over recent years, driven by escalating risks associated with manual therapy, patient monitoring, complex injuries, practice-level claims, and licensure defense matters.
The average total incurred cost for professional liability claims involving physical therapy professionals has increased by 20.3%, reaching $162,174 per claim. Furthermore, the severity of these legal challenges is expanding, with the share of claims closing in the substantial $250,000 to $749,999 indemnity range rising from 9.3% to 13.7% since the previous dataset review.
These concerning insights form the core of the newly released Physical Therapy Professional Liability Claim Report: 5th Edition. The publication is a collaborative effort by Healthcare Providers Service Organization (HPSO), part of the Healthcare division of Aon Affinity—the affinity business of Aon plc—and CNA. The exhaustive report sheds light on the wide array of professional liability exposures currently facing physical therapy professionals and practices. It offers a detailed look at emerging claim trends, licensure defense matters, real-world case studies, in-depth legal analysis, and essential risk management insights designed to help practitioners navigate an increasingly complex operational environment.
Industry leaders emphasize that while the physical therapy profession remains deeply dedicated to patient recovery and wellbeing, the context in which these services are delivered has shifted dramatically. Practitioners now operate in an environment marked by heightened operational complexity, elevated patient expectations, and evolving clinical risks that can inadvertently expose them to litigation and regulatory scrutiny.
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 do so in an environment characterized by increasing complexity and evolving risks. According to Flynn, the newly published report was intentionally designed to provide physical therapists, physical therapist assistants, and practice owners with critical insights and actionable strategies to help minimize their unique professional liability exposures and protect their professional livelihoods.
The comprehensive findings of the report underscore the multifaceted nature of modern liability risks. Beyond direct patient care complications, practices are increasingly vulnerable to operational claims and administrative challenges that can jeopardize a provider’s license to practice. Regulatory scrutiny and licensure defense have emerged as critical areas of concern, requiring practitioners to maintain rigorous standards not only in clinical execution but also in administrative record-keeping, billing practices, and patient communication.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, highlighted the proactive measures that practitioners can take to safeguard their practices. By thoroughly understanding the underlying factors that lead to formal claims and litigation, physical therapy professionals and clinical practices can take deliberate steps to reduce their overall risk profile and lower the probability of facing costly legal battles. Miller explained that the primary aim of the report is to raise awareness regarding prevailing industry trends and primary claim drivers, ultimately enhancing risk management knowledge and supporting safer, higher-quality care for physical therapy professionals and the patients who rely on them.
To help practitioners translate these insights into daily operational improvements, HPSO announced plans to release a targeted series of seven Physical Therapist Spotlights in the coming months. These upcoming releases will feature direct links to specialized resources highlighting risk control best practices across several critical domains, including clinical documentation standards, effective defense strategies for licensure investigations, and the safe integration of emerging technologies within modern physical therapy practices.
The findings and analyses compiled in the Physical Therapy Professional Liability Claim Report: 5th Edition represent an ongoing, long-term commitment by CNA and HPSO to the education and professional protection of the physical therapy community. The overarching analysis is built upon a robust dataset examining 497 closed professional liability claims. This data pool specifically 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 between January 1, 2020, and December 31, 2025. To ensure the relevance of the findings to current legal and clinical environments, the dataset is restricted to claims that resulted in an indemnity payment of $10,000 or greater, establishing the foundation for what is designated in the report as the 2026 dataset, subject to standard reporting limitations and considerations.
For physical therapy professionals, practice owners, and legal observers seeking a deeper understanding of these liability trends and risk mitigation strategies, the complete report is publicly available for download through the official HPSO website at https://www.hpso.com/ptclaimreport.
