Report Shows Growing Professional Liability Claim Costs in Physical Therapy

The average total incurred for professional liability claims involving physical therapy professionals rose 20.3% to $162,174, a new report shows.

Healthcare Providers Service Organization and CNA released the Physical Therapy Professional Liability Claim Report: 5th Edition, which explores claims trends and the risks physical therapists face. The share of physical therapist claims closing in the $250,000 to $749,999 indemnity range rose from 9.3% in the previous dataset to 13.7%.

HPSO is part of the healthcare division of Aon Affinity, the affinity business of Aon plc. The report examines professional liability exposures facing physical therapy professionals and practices, including claim trends and risk management insights.

Physical therapy practices experienced a 15.4% higher average total incurred than individually insured physical therapists, physical therapist assistants and physical therapy students, according to the report.

Physical therapist assistant claims make up a smaller portion of claims but are more costly. Assistants accounted for 16.5% of claims compared with 76.5% for physical therapists, but claims against assistants were 40.4% more costly on average, at $208,546 versus $148,507.

The share of assistant claims involving failure to monitor was nearly double that of physical therapist claims involving the same allegation. Average total incurred for those assistant claims was 47.4% higher, at $291,613 versus $197,783.

Improper performance of manual therapy remained the most common physical therapist claim allegation. Average total incurred in that category rose 35.6%, to $161,317 from $118,957 in the previous dataset.

Equipment-related allegations also became more prominent, increasing from 4% to 11.6% of physical therapist claims. Average total incurred for those claims rose 33% to $158,628, the report shows.

Fractures were the most frequent injury associated with physical therapist claims, accounting for 24.2% of claim injuries and an average total incurred of $179,484.

Claims that closed without an indemnity payment still generated expenses. Those claims averaged $18,092 in expenses and took an average of 3.5 years to close, according to the report.

The main liability analysis includes 497 closed claims involving physical therapists, physical therapist assistants, physical therapy practices and other healthcare practitioners employed by insured practices. The claims closed between Jan. 1, 2020, and Dec. 31, 2025, and resulted in indemnity payments of $10,000 or greater.

The previous dataset covered 2015 through 2019. Total incurred includes indemnity and claim expenses, and the figures reflect payments by CNA on behalf of its insureds.