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Malpractice Insurance for Physical Therapists

Malpractice Insurance for Physical Therapists 

Physical therapists provide hands-on care that helps patients recover from injury, surgery, and chronic conditions. Because their work often involves exercise prescription, manual therapy, and use of specialized modalities, they face real liability exposures.

At Homewood Insurance, we help physical therapists secure coverage that protects their patients, their license, and their business. This page outlines what your policy should include, typical pricing, and which procedures may raise premiums or require special endorsements.

Get a Free Quote Now

The fastest way to find the most suitable insurance coverage for physical therapists is to fill out our quick quote form, so we can give you an idea of the type of insurance coverage that best suits you.

Homewood Insurance works with a number of different carriers to ensure you have the most suitable insurance coverage at the best price.

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Malpractice Insurance for Physical Therapists can include:

  • Professional Liability (malpractice insurance): Covers treatment-related injuries, improper technique, and delayed recovery claims.
  • General Liability (premises insurance): Protects against third-party injuries like slips and falls in the clinic, as well as property damage caused by staff or equipment.
  • Applies to outpatient clinics, hospitals, home health, telehealth, and sports rehabilitation practices.
  • Includes liability for manual therapy, modalities (ultrasound, TENS, hot/cold packs), exercise prescription, assistive devices, and supervision of PT assistants or students.
  • Typical limits: $1M per claim / $3M aggregate, with tail and prior-acts coverage available.

More information

Insurance for Physical Therapists can include:

Malpractice or liability insurance can provide essential protection against these risks:

  1. Professional Liability Coverage for Physical Therapists

    1. Treatment-related injuries: Protection for soft tissue damage, falls during therapy, or aggravation of pre-existing conditions.
    2. Errors in judgment or assessment: Covers claims that improper evaluation, misdiagnosis, or failure to adapt treatment delayed recovery or worsened injuries.
    3. Modalities and equipment use: Coverage for burns, sprains, or other complications caused by ultrasound, electrical stimulation, heat/ice, mechanical traction, or improper device fitting.
    4. Manual therapy and exercise prescription: Liability for joint mobilization, stretching, strength training, gait and balance work, and post-surgical rehabilitation.
    5. Supervision risks: Covers claims involving PT assistants, aides, or students under the therapist’s direction.
    6. Optional endorsements: Can include ergonomics consulting, fall-prevention programs, fitness return-to-work evaluations, and telehealth sessions.

  2. General Liability Coverage for Physical Therapists

    1. Premises liability: Slip-and-fall claims in hallways, waiting rooms, or exercise areas.
    2. Property damage: Protection for accidental damage to rented spaces or patient property during treatment.
    3. Personal and advertising injury: Coverage for allegations of defamation, misrepresentation, or improper advertising.
    4. Applicability: Clinics, hospital departments, sports rehab facilities, and home health visits (with mobile endorsements).
    5. Umbrella options: Additional limits available if contracts require higher coverage (e.g., with hospitals, athletic programs, or schools).Homewood Insurance Group work with  different insurance carriers to find you the most suitable coverage at the best price. Get a quick quote now.

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Cost of Coverage:

Premiums are influenced by specialty mix, litigation environment, facility size, and claims history. Carriers also evaluate risk management protocols such as credentialing, peer review, and informed consent.

Professional Liability (per PT, per year) – Estimated Ranges

  • Low-risk outpatient / solo practice: $400 – $700
    • Covers routine musculoskeletal therapy, exercise prescription, and basic modalities.
  • Mid-size clinics or sports rehab: $700 – $1,200
    • Includes higher patient volume, more equipment, and assistants/students under supervision.
  • High-acuity settings (post-surgical, neuro, home health): $1,200 – $1,500+
    • Involves fragile patients and higher risk of re-injury or falls; increases claim severity.

General Liability (per location, per year)– Estimated Ranges:

  • Small clinic space: $400 – $800
  • Multi-room clinic or sports facility: $800 – $2,000
  • Mobile/home health PT: $500 – $1,000
    • Premiums reflect foot traffic, facility size, and additional risks from off-site care.

Factors that influence price:

  • Patient population (elderly, post-op, or athletes in high-intensity rehab).
  • Services offered (manual therapy vs. advanced modalities, dry needling, telehealth).
  • Claims history and state litigation climate.
  • Staffing model (solo PT vs. multi-therapist practice with aides and assistants).
  • Safety and documentation practices (incident reporting, consent, training).

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High-Risk Procedures and their Impact on your Premiums

Procedure Category Examples Why Higher Risk? Insurance Impact
Biophysical agents Hot packs, cold packs, ultrasound, TENS/EMS, iontophoresis Burns and reinjuries, especially in patients with sensory deficits or neurological issues. Premiums +15–30%; documentation and competency training required.
Dry needling Trigger point therapy, intramuscular stimulation Rare but severe risks (e.g., lung puncture, infection); regulated differently by state. Premiums rise 20–40%; some carriers require special endorsements.
Exercise and gait training Treadmills, stair training, balance exercises, use of gym equipment Falls and fractures during therapy are a leading cause of PT claims. Premiums +20–40% in high-acuity or post-op populations.
Post-surgical rehab Aggressive therapy after knee, hip, or shoulder surgery Can aggravate healing tissues, causing setbacks or additional surgeries. PL premiums rise 15–30%; higher deductibles may be required.
Alternative or wellness modalities Cupping, acupuncture (without separate license), colon hydrotherapy Often excluded from PL policies as non-standard or unproven; injury risks are harder to defend. Coverage often excluded; refusal possible if these services dominate practice.

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Other types of Insurance Physical Therapists may need

 
General Liability Insurance

General Liability Insurance

General Liability covers medical expenses and attorney fees which result from bodily injuries and property damage that your facility or organization could be legally responsible for.
 
 
Business owner's policy (BOP insurance)

Business owner's policy (BOP) insurance

A Business Owner’s Policy (BOP) is a comprehensive insurance package designed for physical therapists with small to medium-sized businesses. It provides a blend of liability protection and property insurance.
 
 
Professional Liability Insurance

Professional Liability Insurance

Professional Liability Insurance overs any negligence or mistakes made by the individual physical therapists during their practice. It differs from General Liability insurance, which covers the practice itself. 
 
 
Commercial Auto Insurance

Commercial Auto Insurance

This is relevant for physical therapists who use a vehicle for practice-related tasks. This insurance covers you against auto accidents, theft, and other vehicle-related incidents.
 
 
workers compensation insurance

Workers Compensation Insurance

Workers Compensation Insurance is usually mandated by law. It protects physical therapy practices and employees in case of work-related injuries or illnesses.
 
 
Cyber Liability Insurance

Cyber Liability Insurance

Covers you against financial losses associated with data breaches, cyber attacks, and other cyber incidents. Insurers will usually conduct rigorous testing of your online system to fix vulnerabilities as part of this policy.
 

Why Work With Homewood

  • We partner with multiple carriers that understand PT risks and offer coverage for both solo therapists and group practices.
  • We help secure policies that cover both Professional and General Liability, ensuring no gaps between treatment errors and on-site incidents.
  • We know which carriers will add endorsements for dry needling, telehealth, sports rehab, and alternative services when needed.
  • Our goal: comprehensive coverage at competitive rates, so physical therapists can focus on patient recovery without fear of legal or financial setbacks.

Call: 608-395-7545 or
Fill Out the Form

Chris-for-web

Chris Worley

Chris specializes in sourcing the most suitable insurance for Physical Therapists at the best price. You can call him or fill out the form and he will get your message directly.