Physical Therapy Liability Claims Have Increased

A new industry report shows a 20.3% rise in the average cost of professional liability claims for physical therapists.

Updated on Oct. 7, 2026 in Healthcare

Isometric editorial illustration of parallel bars in an empty clinical space, representing the increased professional liability risk in physical therapy. — A new industry report from the Healthcare Providers Service Organization reveals a 20.3% increase in professional liability claim costs for physical therapists. AI Illustration. Upload story photo >

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Do you believe rising professional liability costs are making physical therapy less affordable for your household?

The Healthcare Providers Service Organization has released its fifth edition of the Physical Therapy Professional Liability Claim Report. The analysis, which covers 497 closed claims from 2020 through 2025, reveals significant increases in claim costs and frequency.

Why it matters

Rising claim costs and evolving injury profiles highlight an increasingly complex risk environment for physical therapy professionals and practices nationwide. Understanding these liability trends is essential for providers to manage their legal exposure and patient safety protocols effectively.

The average total incurred cost for a physical therapy claim has risen to $162,174. Additionally, claims involving physical therapist assistants were 40.4% more costly than those involving physical therapists, while fractures accounted for 24.2% of all associated injuries.

The players

Healthcare Providers Service Organization

This entity is a major national provider of professional liability insurance coverage and risk management resources for healthcare practitioners.

The details

The report identified improper manual therapy performance as the most frequent claim allegation, while equipment-related incidents increased to 11.6% of claims. Even cases that closed without an indemnity payment incurred an average of $18,092 in defense expenses and required 3.5 years to reach resolution.

2015-2019: Period covered by the previous claim dataset.
2020-2025: Period covered by the current claim dataset.
October 7, 2026: Publication date of the liability report.

Market Landscape

This report updates the liability benchmarks previously established by the 2015-2019 Physical Therapy Professional Liability Claim Report to track current industry volatility. The findings reflect a broader trend of rising malpractice costs impacting specialized healthcare segments across the United States.

These findings suggest that physical therapy practices may face higher insurance premiums and stricter operational requirements. Practitioners should review their current risk management policies to mitigate potential legal exposure related to equipment usage and manual therapy procedures.

The takeaway

Clinicians must prioritize rigorous documentation and equipment maintenance to guard against the rising financial impact of liability claims. Implementing enhanced safety protocols for high-risk procedures like manual therapy is a proactive step toward reducing future litigation expenses.