The financial and legal landscape for physical therapy professionals has grown increasingly complex, marked by a substantial rise in both the severity and cost of professional liability claims. According to the newly released Physical Therapy Professional Liability Claim Report: 5th Edition, the average total incurred cost for professional liability claims involving physical therapy professionals has surged by 20.3% to reach $162,174.
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 comprehensive report sheds light on the mounting professional liability exposures facing physical therapists, physical therapist assistants, and practice owners. The analysis covers a broad spectrum of critical issues, including evolving claim trends, manual therapy risks, patient monitoring challenges, practice-level claims, injury mechanisms, and licensure defense matters. Furthermore, the publication provides industry professionals with detailed case studies, expert analysis, and actionable risk management insights designed to navigate today’s litigious climate safely.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, emphasized the challenging environment in which modern rehabilitation specialists operate. Physical therapy professionals are deeply committed to delivering safe, effective, and evidence-based care that helps patients restore mobility, manage pain, and function at their highest possible levels. However, Flynn noted that they do so within an operational environment characterized by escalating complexity and new forms of risk.
"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," Flynn stated, pointing to the necessity for continuous education and proactive risk mitigation across clinical settings.
The financial data underscores the growing severity of legal challenges facing the profession. Beyond the sharp 20.3% increase in average total incurred costs—which brings the figure to $162,174 per claim—the report highlights a concerning shift in the distribution of indemnity payouts. Specifically, the share of claims closing within the higher $250,000 to $749,999 indemnity range has experienced a notable upward trajectory, climbing from 9.3% in the previous 2020 dataset to 13.7% in the newly released findings. This shift indicates that when legal disputes arise, they increasingly involve severe patient injuries, more complex medical histories, or higher compensatory demands that require substantial financial resolutions.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized that understanding the underlying triggers of litigation is essential for safeguarding both practitioners and patients. By carefully examining the factors that frequently lead to formal claims and lawsuits, physical therapy professionals and practice administrators can implement targeted operational protocols to reduce their vulnerability.
"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," Miller said. She added that the primary objective of the report is to raise professional awareness regarding prevailing trends and prominent claim drivers, thereby enhancing risk management knowledge and supporting safer, higher-quality care delivery across the board.
The data analyzed in the 5th edition of the report is derived from a substantial pool of empirical evidence. The general analysis encompasses 497 closed professional liability claims 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. To maintain focus on significant legal events, the dataset specifically examines claims closed between January 1, 2020, and December 31, 2025, that ultimately resulted in an indemnity payment of $10,000 or greater. This comprehensive timeframe provides a clear window into how legal liabilities have evolved during a period marked by shifting healthcare delivery models, regulatory adjustments, and changing patient expectations.
To help practitioners translate these sobering statistics into practical daily safeguards, HPSO has announced plans to roll out an extensive educational campaign in the coming months. The organization will release a series of seven distinct Physical Therapist Spotlights. Each spotlight will feature direct links to specialized educational resources and risk control best practices. These upcoming modules will target critical operational vulnerabilities highlighted in the report, including rigorous documentation standards, strategies for effective licensure defense, and the safe integration of emerging technologies into modern rehabilitation practices.
Industry observers note that as manual therapy techniques, patient monitoring technologies, and multidisciplinary practice structures continue to evolve, the legal obligations of rehabilitation specialists will remain under intense scrutiny. Reports like the one published by HPSO and CNA serve as vital tools for the physical therapy community, offering the data-driven insights necessary to anticipate legal vulnerabilities, protect professional reputations, and uphold the highest standards of patient safety.
For physical therapy professionals, practice owners, and risk management specialists seeking a deeper understanding of these liability trends and legal developments, the complete Physical Therapy Professional Liability Claim Report: 5th Edition is available for public download and review on the official HPSO website.
