Physical Therapy Liability Claims Have Increased
A new industry report reveals rising costs and more frequent high-value claims in physical therapy.
Updated on Sept. 29, 2026 in Nursing Jobs
Live Poll
Is the increase in healthcare provider liability costs likely to make medical services more expensive?
HPSO and CNA have released an analysis of 497 closed professional liability claims involving physical therapists. The report indicates a 20.3% increase in average total incurred costs for these claims.
Why it matters
The findings underscore a significant rise in legal and professional risks for physical therapy practitioners. The report identifies specific procedural trends, such as manual therapy allegations, that contribute to these increasing financial burdens.
Average costs for practice-level claims reached $170,418, while licensure defense payments increased by 14.8%. Additionally, claims in the $250,000 to $749,999 range grew to represent 13.7% of the total dataset.
The players
HPSO
Healthcare Providers Service Organization is an insurance provider specializing in coverage for healthcare professionals.
CNA
CNA is a large commercial insurance company that partners with organizations to provide professional liability and business insurance solutions.
The details
The analysis focused on claims with indemnity payments of $10,000 or more, finding that improper manual therapy remains the most common allegation. Specifically, dry needling now accounts for 26.4% of manual therapy claims, while fractures represent 24.2% of injuries reported in these cases.
Timeline
The analysis covered closed claims between January 1, 2020, and December 31, 2025.
The professional liability report was published on September 29, 2026.
A series of seven Physical Therapist Spotlights will be released in the coming months.
Market Landscape
This data updates the financial metrics established by the 2020 professional liability baseline for physical therapy. The shift highlights a broader industry trend toward higher indemnity payments and more complex legal defense requirements.
Practitioners should note that physical therapist assistant claims are 40.4% more costly on average than therapist claims. This trend suggests a need for updated risk management strategies and a review of current liability coverage limits.
The takeaway
The rise in costs for manual therapy allegations suggests that practitioners should prioritize updated certification and strict adherence to clinical documentation. Understanding the higher costs associated with physical therapist assistants may also help clinics better allocate their risk management resources.
What happens next
HPSO is scheduled to release a series of seven Physical Therapist Spotlights in the coming months to provide further industry guidance.
Further reading
For more information on the evolving professional requirements in the field, visit Nursing Jobs.
More information
Review the full Download professional liability claim report for detailed case breakdowns.
Source note: This article includes information reported by Physical Therapy Products.
Live Poll
Is the increase in healthcare provider liability costs likely to make medical services more expensive?
