The financial and legal landscape for physical therapists, physical therapist assistants, and practice owners is growing increasingly complex, according to a comprehensive new report. Professional liability claim costs for physical therapy professionals have risen significantly, driven by a combination of high-stakes factors including manual therapy complications, patient monitoring issues, 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 matters is climbing; the share of claims closing in the substantial $250,000 to $749,999 indemnity range has risen from 9.3% to 13.7% since the previous dataset review. These critical findings come from the newly released Physical Therapy Professional Liability Claim Report: 5th Edition.
Published jointly by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—and CNA, the report offers a detailed examination of the professional liability exposures currently facing the physical therapy sector. Beyond broad financial metrics, the publication provides deep analysis into claim trends, licensure defense cases, real-world case studies, and actionable risk management insights designed to help practitioners navigate an increasingly litigious environment.
Industry leaders emphasize that while the physical therapy profession remains deeply dedicated to patient recovery and functional independence, the backdrop against which care is delivered has shifted. Practitioners now operate in an environment marked by heightened operational complexity, shifting regulatory expectations, and evolving patient risk profiles.
"Physical therapy professionals are committed to delivering safe, effective care that helps patients function at their best; however, they practice in an environment marked by increasing complexity and evolving risks," said Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization. "This report is designed to provide physical therapists, physical therapist assistants, and practice owners with insights and strategies to help minimize their unique professional liability exposures."
The data compiled in the 5th edition of the report aims to demystify the underlying causes of litigation so that clinical teams can proactively adjust their practices. By identifying precisely where vulnerabilities lie—ranging from clinical execution to administrative protocols—the publication serves as an educational bridge between historical claims data and future risk mitigation.
"By understanding the factors that lead to claims, physical therapy professionals and practices can take proactive steps to help reduce risk and lower the chance of litigation," said Crystal Miller, RPLU, CPCU, underwriting director at CNA. "This report aims to raise awareness of trends and claim drivers to enhance risk management knowledge and support safer care for physical therapy professionals and their patients."
To extend the reach of these findings and support ongoing professional education, HPSO has announced plans to roll out a specialized series of resources in the coming months. This upcoming initiative will feature a set of seven Physical Therapist Spotlights containing direct links to supplementary tools and educational materials. These spotlights will focus heavily on risk control best practices, emphasizing crucial operational areas such as meticulous clinical documentation, strategies for effective licensure defense, and the safe integration of emerging healthcare technology into everyday practice.
The comprehensive analysis featured in the Physical Therapy Professional Liability Claim Report: 5th Edition is built upon a robust empirical foundation. The general analysis evaluates 497 closed professional liability claims. This dataset specifically captures claims involving physical therapists, physical therapist assistants, physical therapy practices, and other allied healthcare practitioners who provided services as employees of an insured physical therapy practice. To ensure the relevance and timeliness of the insights, the analyzed claims occurred and were processed between January 1, 2020, and December 31, 2025, specifically focusing on matters that resulted in an indemnity payment of $10,000 or greater, categorized as the 2026 dataset.
Physical therapy professionals, practice administrators, and legal compliance officers seeking a deeper understanding of these evolving liabilities can access the full publication. The complete report, along with its detailed appendices, statistical breakdowns, and analytical insights, is available for download directly through the HPSO resource portal at https://www.hpso.com/ptclaimreport.
