Two Physical Therapists, Two Lawsuits, One Lesson
You're a physical therapist. You help people recover from injuries, regain mobility, and improve their quality of life. Lawsuits aren't on your radar. But they should be. Even a small incident — a rash, a dropped patient — can turn into a legal headache that threatens your license and your savings.
Here are two real claim stories, anonymized and reported by Berxi, that show how quickly things can go sideways. Then I'll explain what they mean for your coverage.
Story 1: The $10,000 Small Claims Surprise
A physical therapist received notice in 2025 that a former patient was suing her in small claims court for $10,000 — years after treatment ended. The patient alleged that the PT's care caused an injury. The PT was blindsided, anxious, and worried about her license.
She had individual malpractice insurance through Berxi. Berxi assigned an attorney to help her prepare for mediation, gather records, and understand her options. The case was resolved without a payout, but the emotional and professional stress was real. Without insurance, she would have paid for legal help out of pocket — or tried to handle it alone.
Story 2: The Baseless Accusation of Unsanitary Equipment
Another PT received a demand letter from a patient's attorney asking for $25,000. The patient claimed he developed a burning rash from unsanitary equipment at the PT's practice. The PT was furious — the accusation was baseless. The patient had never complained before and kept coming back for sessions.
The PT's insurer, Berxi, assigned a claims examiner and legal support. They helped defend the claim, and it was ultimately dropped. But without coverage, the PT would have faced the cost of hiring a lawyer and the risk of a default judgment.
Why These Stories Matter for Every PT
These aren't catastrophic malpractice cases. They're small claims and demand letters. But they still cost time, money, and protection you can count on. According to HPSO, the average occupational therapy malpractice lawsuit totals $60,299. For PTs, the numbers are similar. Even a "small" claim can exceed $10,000 in legal fees and settlement costs.
And claims can surface years later. In the first story, the lawsuit came after treatment ended. If that PT had only employer coverage, she would have been on her own — employer policies typically end when you leave the job.
Does Employer Coverage Protect You Personally?
Short answer: usually not the way you think. Employer malpractice policies are designed to protect the facility first. They often exclude license defense, which is critical when a patient files a complaint with your state board. They also typically let the insurer settle without your consent, which can affect your reputation and future employment.
And if you change jobs, that coverage ends. Any claim arising from your work at that job — even if filed years later — won't be covered. That's why individual coverage is important.
What Does a PT Malpractice Policy Cover?
A good individual policy covers:
- Legal defense costs — attorney fees, court costs, expert witnesses
- Settlement or judgment up to your policy limits
- License board defense — many policies include up to $25,000 or $35,000 for state board complaints
- Reputation protection — some policies, like Berxi, cover PR help
Most PT policies cost between $100 and $350 per year for basic limits. That's less than a dinner out each month.
Occurrence vs. Claims-Made: What's the Difference?
Two main types of policies:
- Occurrence — covers any incident that happened while the policy was active, no matter when the claim is filed. No tail needed. This is simpler and safer.
- Claims-made — only covers claims filed while the policy is active. If you cancel or switch jobs, you need to buy tail coverage (often 1.5–2x your annual premium) to protect past work.
Many carriers like HPSO/NSO and CPH offer occurrence policies. Berxi offers both. Check before you buy.
Which Carriers Offer PT Malpractice Insurance?
Several reputable carriers insure physical therapists:
- HPSO/NSO — $1M/$6M occurrence, license defense up to $25k, portable. APTA members get 10% off.
- Proliability (Mercer) — up to $1M/$3M occurrence via Liberty, board reimbursement $25k/incident, HIPAA $50k.
- Berxi (Berkshire Hathaway) — occurrence and claims-made, defense costs outside limits, $0 deductible, reputation coverage.
- CM&F Group — up to $1M/$6M portable, telemedicine + license defense included.
- CPH & Associates — occurrence, State Licensing Board Defense $35k, A++ rated.
For more details, see our carrier comparison hub.
Can a Physical Therapist Get Sued for a Minor Injury?
Yes. As the stories above show, even a rash or an alleged minor injury can lead to a demand letter or small claims lawsuit. Patients can sue for any reason, and even baseless claims require a legal response. Without insurance, you'd pay for that response yourself.
The Bottom Line
Individual malpractice insurance for PTs is affordable and essential. It protects your license, your savings, and your reputation. Don't rely on your employer's policy to cover you in every situation.
Prices quoted are estimates. Final premiums depend on your location, practice setting, limits, and claims history. Always get a personalized quote from the carrier.