Physical Therapy Liability Claim Costs Rose 20 Percent
Clinic owners and therapists face higher costs and longer closure times for professional liability claims.
Updated on Oct. 7, 2026 in Healthcare
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The Healthcare Providers Service Organization has released its latest professional liability report, detailing a 20.3% increase in the average cost of claims against physical therapy practitioners. The findings cover 497 closed claims processed between 2020 and 2025.
Why it matters
Rising claim costs and the increased prevalence of equipment-related allegations shift the financial risk landscape for physical therapy providers. These trends force owners to re-evaluate their liability coverage and internal safety protocols to mitigate rising operational exposures.
Average total incurred claim costs reached $162,174, a 20.3% increase over previous reporting periods. Practices now face 15.4% higher claim costs than individual professionals, while claims resulting in no indemnity payment still average $18,092 in administrative and legal expenses.
The players
Healthcare Providers Service Organization
A major administrator of professional liability insurance programs for healthcare practitioners across the United States.
The details
Liability risk has evolved as manual therapy improper performance remains the most common allegation, while equipment-related claims jumped from 4% to 11.6% of the total. Fractures represent 24.2% of injuries, often leading to costlier outcomes. Even when claims close without an indemnity payment, the average duration is 3.5 years, creating significant operational and financial friction for clinics caught in protracted litigation.
Timeline
2015-2019: The period covered by the previous claim dataset.
2020-2025: The period covered by the current claim dataset.
October 7, 2026: The publication date of the liability report.
Market Landscape
This report updates the baseline established by the 2015-2019 dataset, highlighting a sharp inflation in claim severity for the industry. The results underscore an intensifying risk profile that deviates from historical patterns, particularly in equipment-related liability.
Clinic operators should review equipment maintenance documentation and insurance policy limits to account for the increased frequency of equipment-related claims. Additionally, ensure that assistant training programs are robust to mitigate the higher cost profile associated with claims against support staff.
The takeaway
The data confirms that physical therapy liability is becoming significantly more expensive, with claims increasingly involving severe injuries like fractures. Owners should prioritize comprehensive documentation of manual therapy and equipment checks to defend against these escalating claims.
Further reading
For more on managing risk and operational standards, see our coverage of Healthcare.
Source note: This article includes information reported by Claims Journal.
Live Poll
Do you believe rising professional liability costs are making physical therapy less affordable for your household?
