How Much Does Physical Therapists Insurance Cost? 2025 Rates

Physical therapy practices in the U.S. typically spend between $240 and $500 per year on business insurance. That equals about $20 to $40 per month.

What Drives Premiums

Several factors influence how much coverage will cost:

• Services offered – Practices providing specialized or high-risk treatments (like sports injury rehab or advanced manual therapy) often face higher premiums than those offering routine physical therapy.
• Business size – Solo practitioners usually pay less, while larger clinics with multiple therapists and staff face greater liability exposure.
• Location – Operating in busy metropolitan areas or regions with higher lawsuit rates can raise premiums compared to quieter, lower-risk regions.
• Claims history – A clean record helps keep costs down, while past claims can increase rates.

Why It Matters

Understanding these cost drivers helps physical therapists budget wisely and select coverage that matches their risks. With the right plan, they can protect their practice, staff, and patients without overspending.

How Much Does Physical Therapist Insurance Cost?

On average, physical therapists spend between $240 and $500 annually on insurance. That equals about $20 to $40 per month. These figures are only estimates, and the actual premium depends on the details of your practice.

Why Costs Differ

No two physical therapy practices face the same risks. A solo therapist working independently will usually pay far less than a larger clinic with multiple providers and staff.

Services and Risk Level

The type of services you provide plays the biggest role in determining costs. Specialized treatments, advanced rehabilitation programs, or high-risk procedures often carry higher liability premiums compared to routine therapy sessions.

Location and Property Value

Where your practice operates matters. Clinics in busy metropolitan areas or regions with higher lawsuit rates often pay more for liability coverage. The size and value of your property and equipment also influence commercial property insurance costs.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Services offered – Impacts professional liability and cyber insurance needs.
• Number of employees – More staff increases workers’ compensation requirements.
• Property size and value – Larger offices or costly assets raise property coverage costs.
• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Why This Matters

Understanding these variables helps physical therapists estimate insurance needs more accurately and budget for the real costs of protecting their practice. With the right coverage, you can safeguard your livelihood without overspending.

Average Physical Therapist Insurance Costs For Coverage Types

When it comes to protecting yourself as a physical therapist, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most physical therapists need.

General liability insurance: $20 per month

Business owner’s policy: $69 per month

Professional liability insurance: $60 per month

Workers’ compensation insurance: $51 per month

Commercial auto insurance: $212 per month

Commercial property insurance: $67 per month

Cyber liability insurance: $80 per month

General Liability Insurance

The average cost of general liability insurance for a physical therapist is about $20 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a patient slips on a wet floor and gets injured, this policy would help pay for their medical expenses and your legal defense costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business type (your services), location, office environment (if clients frequently visit your office), contract requirements, and previous claims history.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for physical therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on clinic size, services offered, claims history, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $69 per month for physical therapists.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your office building, furnishings, and equipment. For instance, if a fire damages your computers and files, the BOP would help cover repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the size of your business, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like cyber protection, equipment breakdown, or business interruption insurance.

Average annual premiums by state:

Note: These estimates are based on average national Business Owner’s Policy (BOP) premiums for physical therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on clinic size, property value, services offered, claims history, and insurer underwriting practices.

Professional Liability Insurance

The average cost of professional liability insurance for physical therapists is about $60 per month.

Sometimes called errors and omissions, this type of insurance covers claims relating to errors, emissions, negligence, or other financial losses that a customer or client experiences because of the advice you gave. For example, if a client claims that your physical therapy caused them harm, leading to a severe injury, this would help cover costs for medical care or lawsuits against you.

Typical policy limits are $1 million per claim, but higher limits are sometimes required by state laws or client contracts.

Cost depends on the size of your business, the services you offer, the number of years you’ve been in business, coverage limits, and claims history.

Average annual premiums by state:

Note: These estimates are based on average national Professional Liability Insurance premiums for physical therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on clinic size, services offered, claims history, coverage limits, and insurer underwriting practices.

Cyber Liability Insurance

The average cost of cyber liability insurance for physical therapists is $80 per month.

Cyber liability insurance covers the costs a physical therapist might incur after a cyber incident. This is particularly important for any therapist that has to maintain patient PPI and HIPAA compliance. This extends to lost income after a cyber attack, forensic investigations, data recovery costs, regulatory fines, and the costs of informing customers about the attack.

Physical therapists can benefit from this coverage if they handle any sensitive data, or if they want to cover gaps in their insurance.

Costs are based on factors like the size of your organization, the type of client data you handle, and the cybersecurity measures you already have in place.

Average annual premiums by state:

Note: These estimates are based on average national Cyber Liability Insurance premiums for physical therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on clinic size, patient data sensitivity, claims history, coverage limits, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a physical therapist is around $51 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an employee trips and falls over loose cords, and breaks their ankle, workers’ compensation would cover their hospital visit and part of their lost wages while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform (whether in your office or on-site for each client), your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation Insurance premiums for physical therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for physical therapists is about $212 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if a physical therapist causes an accident while driving on a work-related errand, this policy would cover the damages and any third-party claims.

Typical policy limits are around $1 million combined single limit (covering both bodily injury and property damage).

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for company services like driving to and from off-site services.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for physical therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, coverage limits, claims history, and insurer underwriting practices.

Commercial Property Insurance

The average cost of commercial property insurance for a physical therapist, when purchased separately, usually runs $67 per month. This rate can jump depending on whether you work at a large clinic or on your own.

Commercial property insurance covers damage to the therapy office and its contents due to fire, theft, vandalism, or certain weather events. For example, if a fire destroys equipment like exercise machines or computers, this policy would pay for repairs or replacement.

Typical policy limits are based on the replacement cost value of the insured property, which could easily reach into the hundreds of thousands depending on your location, building size, and equipment investments.

Premiums are determined by factors like the building’s age and construction type, fire safety systems in place, replacement cost of equipment, neighborhood crime rates, and whether you add endorsements such as professional liability or cyber protection.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Property Insurance premiums for physical therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on clinic size, property value, location risks (fire, theft, natural disasters), and insurer underwriting practices.

Physical Therapist Business Insurance Costs By Provider

Physical therapist business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small business insurance costs for physical therapists, typically including professional liability (malpractice/errors & omissions), general liability, and business owner’s policies. Actual premiums will vary depending on factors such as clinic size, location, services offered, claims history, and coverage limits.

What Factors Impact Your Physical Therapist Insurance Costs?

Insurance premiums for physical therapists are based on the overall risk profile of the practice. Underwriters weigh factors such as services offered, location, property value, and claims history when setting rates.

Claims History

A record of frequent claims can raise premiums, as insurers see this as higher risk. Maintaining a clean history often helps secure discounts and lower costs.

Property Value And Office Equipment

High-value rehabilitation equipment, specialized training tools, or custom furnishings increase commercial property insurance costs. Many practices also add cyber insurance endorsements to protect sensitive patient data, which raises premiums further.

Type Of Services

Not all therapy services carry the same risk. Physical therapists working with injury recovery or elderly patients often face higher liability costs compared to those serving the general population with routine therapy.

Location

Where your practice operates matters. Clinics in urban, high-crime, or flood-prone areas often pay more for property and liability coverage, while suburban or lower-risk regions may benefit from reduced rates.

Size Of The Operation

The number of employees, square footage, and annual revenue all affect premiums. Larger practices face greater exposure to liability claims and higher workers’ compensation costs, especially when staff travel between client sites.

Policy Limits And Deductibles

Higher policy limits provide stronger protection but increase premiums. Choosing a larger deductible can lower monthly costs, though it raises your out-of-pocket risk when claims occur.

Optional Endorsements

Add-ons such as business interruption, cyber liability, or hired/non-owned auto coverage tailor protection to your practice’s needs but also increase overall costs.

Insurance Provider

Rates vary among carriers. Some specialize in healthcare risks and may offer better pricing or flexible options for physical therapists. Comparing quotes across providers can help you secure the best deal.

How To Lower Your Physical Therapist Insurance Costs

Operating a physical therapy practice comes with plenty of expenses, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical ways to cut costs without losing protection.

Raise Your Deductible

Opting for a higher deductible is a straightforward way to lower monthly premiums. Just be sure your practice can comfortably cover the out-of-pocket amount if a claim arises.

Bundle Policies Together

Combining coverage often leads to savings. Many insurers offer a Business Owner’s Policy (BOP) that merges general liability and property insurance at a reduced rate. Adding workers’ compensation or professional liability through the same provider can unlock additional discounts while simplifying paperwork.

Ask About Discounts

Insurers frequently reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

Build Safer Clinics

Accidents and hazards can quickly drive up insurance costs. Installing non-slip flooring, using wet floor signs, keeping walkways clear, and servicing company vehicles regularly all help reduce liability risks. Fewer incidents mean fewer claims, which lowers premiums over time.

Strengthen Your Safety Program

Workers’ compensation costs can be managed by focusing on employee safety. Training staff on fire safety, maintaining clear emergency exits, and practicing safe workplace habits reduces injuries. When fewer claims are filed, premiums stay lower.