Physical therapy business insurance costs vary widely across coverage types, and understanding these differences helps you budget smartly. MoneyGeek's analysis shows monthly premiums range from $7 for workers' compensation to $41 for business owner's policy (BOP) coverage.
How Much Does Physical Therapy Business Insurance Cost?
Business insurance for physical therapy practices can cost as little as $7 per month. Your specific rate will depend on your location, years of experience and types of coverage.
Discover cheap physical therapy business insurance below.
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Updated: August 20, 2025
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Key Takeaways
Physical therapy business insurance costs range from $7 to $113 monthly, with business owner's policies starting at $41 and general liability reaching $113 per month.
Your physical therapy insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable physical therapy business insurance costs.
Average Physical Therapy Business Insurance Cost Overall
| BOP | $41 |
| General Liability | $113 |
| Professional Liability (E&O) | $94 |
| Workers' Comp | $7 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Physical Therapy Business Insurance Cost for General Liability Coverage by State
Your physical therapy business insurance cost for general liability coverage depends on where you operate. Maine offers the most savings at $96 monthly (versus the $114 national average), while Hawaii costs $176 monthly.
| Alabama | $109 |
| Alaska | $153 |
| Arizona | $105 |
| Arkansas | $106 |
| California | $123 |
| Colorado | $110 |
| Connecticut | $120 |
| Delaware | $119 |
| Florida | $120 |
| Georgia | $112 |
| Hawaii | $176 |
| Idaho | $105 |
| Illinois | $121 |
| Indiana | $108 |
| Iowa | $106 |
| Kansas | $108 |
| Kentucky | $103 |
| Louisiana | $151 |
| Maine | $96 |
| Maryland | $106 |
| Massachusetts | $116 |
| Michigan | $105 |
| Minnesota | $104 |
| Mississippi | $111 |
| Missouri | $110 |
| Montana | $110 |
| Nebraska | $105 |
| Nevada | $126 |
| New Hampshire | $110 |
| New Jersey | $125 |
| New Mexico | $111 |
| New York | $127 |
| North Carolina | $96 |
| North Dakota | $96 |
| Ohio | $103 |
| Oklahoma | $114 |
| Oregon | $103 |
| Pennsylvania | $127 |
| Rhode Island | $122 |
| South Carolina | $114 |
| South Dakota | $104 |
| Tennessee | $108 |
| Texas | $112 |
| Utah | $106 |
| Vermont | $106 |
| Virginia | $101 |
| Washington | $126 |
| West Virginia | $116 |
| Wisconsin | $109 |
| Wyoming | $103 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Physical Therapy Business Insurance Cost for Workers’ Compensation Coverage by State
Your physical therapy business's cost for workers' compensation varies by state. North Carolina offers the lowest rates at $6 monthly and New York the highest at $8 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $7 |
| Alaska | $6 |
| Arizona | $7 |
| Arkansas | $7 |
| California | $8 |
| Colorado | $7 |
| Connecticut | $7 |
| Delaware | $7 |
| Florida | $7 |
| Georgia | $7 |
| Hawaii | $7 |
| Idaho | $7 |
| Illinois | $7 |
| Indiana | $7 |
| Iowa | $7 |
| Kansas | $7 |
| Kentucky | $6 |
| Louisiana | $8 |
| Maine | $6 |
| Maryland | $7 |
| Massachusetts | $7 |
| Michigan | $7 |
| Minnesota | $6 |
| Mississippi | $7 |
| Missouri | $7 |
| Montana | $7 |
| Nebraska | $7 |
| Nevada | $8 |
| New Hampshire | $7 |
| New Jersey | $8 |
| New Mexico | $7 |
| New York | $8 |
| North Carolina | $6 |
| Oklahoma | $6 |
| Oregon | $6 |
| Pennsylvania | $8 |
| Rhode Island | $8 |
| South Carolina | $7 |
| South Dakota | $6 |
| Tennessee | $7 |
| Texas | $7 |
| Utah | $7 |
| Vermont | $7 |
| Virginia | $6 |
| West Virginia | $7 |
| Wisconsin | $7 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Physical Therapy Business Insurance Cost for Professional Liability Coverage by State
The cost for professional liability varies by state for physical therapy businesses. The national average is $94 monthly. North Carolina offers the lowest rates at $82 monthly, while New York charges the highest at $109 for E&O insurance.
| Alabama | $93 |
| Alaska | $88 |
| Arizona | $90 |
| Arkansas | $90 |
| California | $107 |
| Colorado | $93 |
| Connecticut | $103 |
| Delaware | $103 |
| Florida | $101 |
| Georgia | $96 |
| Hawaii | $100 |
| Idaho | $90 |
| Illinois | $102 |
| Indiana | $92 |
| Iowa | $89 |
| Kansas | $92 |
| Kentucky | $88 |
| Louisiana | $106 |
| Maine | $82 |
| Maryland | $90 |
| Massachusetts | $100 |
| Michigan | $89 |
| Minnesota | $88 |
| Mississippi | $94 |
| Missouri | $93 |
| Montana | $94 |
| Nebraska | $87 |
| Nevada | $106 |
| New Hampshire | $93 |
| New Jersey | $108 |
| New Mexico | $96 |
| New York | $109 |
| North Carolina | $82 |
| North Dakota | $82 |
| Ohio | $89 |
| Oklahoma | $88 |
| Oregon | $87 |
| Pennsylvania | $108 |
| Rhode Island | $104 |
| South Carolina | $96 |
| South Dakota | $88 |
| Tennessee | $92 |
| Texas | $96 |
| Utah | $90 |
| Vermont | $89 |
| Virginia | $87 |
| Washington | $106 |
| West Virginia | $100 |
| Wisconsin | $92 |
| Wyoming | $85 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Physical Therapy Business Insurance Cost for BOP Coverage by State
Business owner's policy rates vary widely for physical therapy practices across states. Monthly premiums range from $35 in North Dakota to $48 in Louisiana, showing how location impacts insurance costs.
| Alabama | $40 |
| Alaska | $38 |
| Arizona | $39 |
| Arkansas | $40 |
| California | $46 |
| Colorado | $40 |
| Connecticut | $45 |
| Delaware | $44 |
| Florida | $44 |
| Georgia | $42 |
| Hawaii | $46 |
| Idaho | $39 |
| Illinois | $46 |
| Indiana | $41 |
| Iowa | $40 |
| Kansas | $40 |
| Kentucky | $39 |
| Louisiana | $48 |
| Maine | $35 |
| Maryland | $39 |
| Massachusetts | $44 |
| Michigan | $39 |
| Minnesota | $39 |
| Mississippi | $42 |
| Missouri | $41 |
| Montana | $41 |
| Nebraska | $39 |
| Nevada | $47 |
| New Hampshire | $41 |
| New Jersey | $46 |
| New Mexico | $41 |
| New York | $48 |
| North Carolina | $35 |
| North Dakota | $35 |
| Ohio | $38 |
| Oklahoma | $39 |
| Oregon | $38 |
| Pennsylvania | $47 |
| Rhode Island | $44 |
| South Carolina | $43 |
| South Dakota | $38 |
| Tennessee | $39 |
| Texas | $42 |
| Utah | $39 |
| Vermont | $40 |
| Virginia | $37 |
| Washington | $46 |
| West Virginia | $43 |
| Wisconsin | $41 |
| Wyoming | $37 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Physical Therapy Business Insurance Cost
Your physical therapy business insurance cost depends on multiple variables that insurers evaluate when setting your premiums. Knowing what drives these costs helps you budget more effectively.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in areas with higher healthcare costs or greater liability risks increases your risk profile, and state differences create substantial premium variations.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single patient injury claim can substantially increase your general liability rates at renewal.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding physical therapists and support staff increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A solo physical therapist earning $100,000 annually pays less than a multi-therapist practice with $500,000 in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Physical Therapy Business Insurance
Finding affordable physical-therapy business insurance cost solutions requires strategic shopping and smart business practices. These proven methods can reduce your premiums immediately or over time as you build a better risk profile.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your physical therapy practice needs prevents overpaying for unnecessary coverage. Professional liability protects against client injury claims, while general liability covers basic accidents. Commercial property insurance safeguards your equipment and facility.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Request quotes from at least three insurance companies to find the best rates. Consider working with an independent agent who can handle comparison shopping for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining professional liability, general liability and property coverage with one carrier typically costs less than separate policies from different providers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means you'll pay more out-of-pocket for small claims, but save money on regular insurance payments.
- 5
Pay annually instead of monthly
Monthly payment processing fees can add up quickly. Paying your insurance premium annually often eliminates these fees and may qualify you for additional discounts.
- 6
Review and adjust your coverage annually
Your insurance needs change as your practice grows. Review your policy yearly to ensure coverage matches your current business size and operations. Remove unnecessary coverage and adjust limits based on your actual needs.
Insurance for Physical Therapy Business Cost: Bottom Line
Physical therapy business insurance costs range from $7 to $113 monthly. Costs vary based on several factors that insurance companies review to set your rates.
Physical Therapy Business Insurance Cost: FAQ
Physical therapy business owners ask many questions about insurance costs, so we gathered expert answers to the most common pricing questions below.
What is the cheapest type of physical therapy business insurance?
Workers' compensation insurance costs $7 monthly, but it only covers employee injuries. Most physical therapy businesses need general liability coverage ($113 monthly) to protect against customer accidents and property damage claims.
How much can I save by bundling my physical therapy business insurance policies?
Bundling policies through a business owner's policy (BOP) offers the most cost-effective insurance option, averaging $41 per month. This combines essential coverages while providing significant savings.
What factors make my physical therapy business insurance more expensive?
Several factors increase physical therapy business insurance costs: service locations, past claims history, staff size, equipment value, liability risks and business credit rating.
Should I choose a $500 or $2,500 deductible for my physical therapy business insurance?
A higher deductible of $2,500 reduces monthly premiums, but requires more cash when filing claims. Consider your financial flexibility and claim frequency when choosing your deductible.
How much does workers' compensation cost for physical therapy businesses by state?
Monthly workers' compensation costs for physical therapy businesses range from $6 in North Carolina to $8 in New York, with state regulations impacting final rates.
Is business owner's policy (BOP) worth the extra cost for physical therapy companies?
A BOP costs around $41 monthly and bundles general liability, commercial property and business interruption coverage into one policy. This combination delivers more value than purchasing individual policies.
How often should I shop around for physical therapy business insurance quotes?
Review your business insurance coverage annually during renewal time. Compare at least three insurance providers to find potential savings, particularly if your practice has grown or changed.
How We Determined Physical Therapy Business Insurance Costs
We collected physical therapy business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small physical therapy businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the physical therapy industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.