Physical Therapy Business Insurance Cost (2025 Rates)

Updated: October 13, 2025

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Key Takeaways

Physical therapy business insurance costs range from $71 to $576 annually on average, depending on your coverage type, state and sub-industry.

Your physical therapy insurance premiums depend on your location, claims history, services offered and employee count.

Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable physical therapy business insurance costs.

How Much Is Insurance for a Physical Therapy Business?

We found average business insurance costs for physical therapy companies for commonly needed coverage are as follows:

Complete Physical Therapy Insurance Package: $255 per month or $3,060 yearly for combined BOP, workers' comp and professional liability coverage.
General Liability Coverage: $113 monthly or $1,352 annually
Workers' Compensation Insurance: $7 per month or $82 per year
Professional Liability Coverage: $94 per month or $1,131 annually
Business Owner's Policy (BOP) Insurance: $41 monthly or $494 annually


BOP	$41	$494
General Liability	$113	$1,352
Professional Liability (E&O)	$94	$1,131
Workers' Comp	$7	$82

Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.

Get Matched to Cheap Physical Therapy Business Insurers

Select your industry and state to get a customized quote.

Industry

State

Physical Therapy Business Insurance Cost of General Liability Coverage by State

Physical therapy business insurance cost for general liability insurance varies by location. Maine offers the best value at $96 monthly compared to the $114 national average, while Hawaii costs $176 monthly.


Alabama	$109	$1,305
Alaska	$153	$1,839
Arizona	$105	$1,265
Arkansas	$106	$1,275
California	$123	$1,478
Colorado	$110	$1,318
Connecticut	$120	$1,442
Delaware	$119	$1,428
Florida	$120	$1,437
Georgia	$112	$1,350
Hawaii	$176	$2,116
Idaho	$105	$1,261
Illinois	$121	$1,457
Indiana	$108	$1,297
Iowa	$106	$1,266
Kansas	$108	$1,291
Kentucky	$103	$1,240
Louisiana	$151	$1,809
Maine	$96	$1,150
Maryland	$106	$1,269
Massachusetts	$116	$1,393
Michigan	$105	$1,260
Minnesota	$104	$1,248
Mississippi	$111	$1,335
Missouri	$110	$1,315
Montana	$110	$1,323
Nebraska	$105	$1,258
Nevada	$126	$1,510
New Hampshire	$110	$1,322
New Jersey	$125	$1,503
New Mexico	$111	$1,336
New York	$127	$1,524
North Carolina	$96	$1,150
North Dakota	$96	$1,154
Ohio	$103	$1,234
Oklahoma	$114	$1,370
Oregon	$103	$1,236
Pennsylvania	$127	$1,521
Rhode Island	$122	$1,458
South Carolina	$114	$1,368
South Dakota	$104	$1,244
Tennessee	$108	$1,297
Texas	$112	$1,340
Utah	$106	$1,270
Vermont	$106	$1,277
Virginia	$101	$1,212
Washington	$126	$1,509
West Virginia	$116	$1,393
Wisconsin	$109	$1,305
Wyoming	$103	$1,230

Note: We based these general liability rates on physical therapy businesses with two employees across different states. Your rates will vary based on your location, services, claims history and the number of employees.

Physical Therapy Business Insurance Cost of Workers’ Compensation Coverage by State

Physical therapy businesses have different workers' compensation insurance rates depending on location. North Carolina has the most affordable rates at $6 monthly, while New York reaches $8 monthly. State regulations and local claim histories drive these pricing differences across the country.


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

Note: We based these workers' comp rates on physical therapy businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.

Physical Therapy Business Insurance Cost of Professional Liability Coverage by State

Your professional liability cost varies by state. This coverage averages $94 monthly nationwide. North Carolina offers the most affordable rates at $82 monthly, while New York has the highest premiums at $109 monthly.


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

Note: We based these professional liability rates on physical therapy businesses with two employees across different states. Your actual rates will depend on your services offered and location.

Physical Therapy Business Insurance Cost of BOP Coverage by State

Physical therapy business insurance costs depend heavily on your state when it comes to business owner's policy coverage. BOP insurance cost ranges from $35 in North Dakota to $48 in Louisiana for the same coverage.

North Dakota offers the most affordable rates at $35 monthly, while Louisiana residents face the highest premiums. This $13 difference adds up to $156 more annually for identical protection.

Your location affects rates due to state regulations, lawsuit frequency, and local business risks. States with higher litigation rates or severe weather charge more for coverage.


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

Note: We based these BOP rates on physical therapy businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.

Physical Therapy Business Insurance Cost by Provider

Physical therapy business insurance costs vary widely by provider, ranging from $37 to $255 monthly. This variation stems from each insurer's specific market focus and risk appetite, which shifts based on profitability and coverage expansion opportunities within targeted business segments.


Chubb	$51	$615
Coverdash	$47	$565
Hiscox	$44	$533
NEXT Insurance	$39	$466
Nationwide	$40	$483
Progressive Commercial	$42	$502
Simply Business	$43	$519
The Hartford	$37	$442
Thimble	$255	$3,063
biBERK	$45	$545

Physical Therapy Business Insurance Cost Factors

Physical therapy business insurance costs depend on multiple factors that insurers review when determining your policy price:

Geographic location

State licensing boards and malpractice climates vary considerably across the country. Practicing in regions with aggressive medical litigation or strict scope-of-practice rules results in higher professional liability premiums.

Safety record and claims history

Allegations of improper treatment or worsening patient conditions create malpractice exposure. Even unsuccessful claims against your practice remain visible to underwriters and can influence pricing for multiple renewal cycles ahead.

Practice setting

Working within hospital systems or medical groups often provides institutional coverage. Independent clinics and private practices assume full malpractice responsibility, requiring individual policies that reflect complete exposure to patient claims.

Employee count and payroll

Staffing clinics with multiple therapists, aides and administrative personnel expands your workers' comp obligations. Solo practitioners keep this expense minimal, while multi-location practices see premiums grow alongside their total employee wages.

Practice size and revenue

Patient volume and billing totals reflect your exposure to potential malpractice claims. Small practices seeing 40 patients weekly for $150,000 annually present different risk than busy clinics treating 200+ patients and generating $800,000.

Coverage limits

Professional liability protects against treatment errors and negligence allegations. Most therapists maintain $1 million per occurrence with $3 million aggregate, though practices in high-litigation states may opt for $2 million limits at increased cost.

Equipment

Therapeutic equipment, treatment tables and diagnostic tools require adequate property coverage. Multi-room clinics with advanced modalities like aquatic therapy or AlterG treadmills carry substantially more property value than basic outpatient setups.

Certifications and experience

Board certifications and years in practice demonstrate expertise that insurers recognize. Newly licensed therapists face higher malpractice rates initially, while experienced practitioners with specialty credentials often qualify for preferred pricing tiers.

How to Get Cheap Physical Therapy Business Insurance

Lowering your physical therapy business insurance costs takes planning and smart decision-making. Our step-by-step guide is here to help. By following proven business strategies, you can find the best cheap business insurance for your physical therapy practice while strengthening your long-term risk profile.

1
Choose the right coverage types for your business
Physical therapy practices need professional liability (malpractice) for treatment injuries and misdiagnosis, general liability for patient falls and equipment accidents in your clinic, and property insurance for therapy equipment, treatment tables and modalities like ultrasound machines.

Add cyber liability for electronic health records, employment practices liability if you have staff therapists, business interruption for income protection during closures, and sexual misconduct coverage despite proper draping protocols.
2
Shop multiple insurance companies
Physical therapy premiums vary based on practice setting. Outpatient clinics pay different rates than home health providers or sports medicine specialists. Healthcare-focused insurers understand licensing requirements, HIPAA compliance and treatment-specific risks better than general carriers.
3
Bundle your coverage types
Combining professional liability, general liability, and cyber coverage saves 17% to 25% compared to purchasing separately. Many healthcare insurers offer physical therapy packages that include employment practices and sexual misconduct coverage at reduced bundle rates.
4
Increase your deductibles
Higher property deductibles of $1,000 to $2,500 can reduce premiums by 18% to 24%, which works for established practices with quality equipment.

Keep professional liability deductibles moderate since defense costs for malpractice claims can reach $75,000 to $150,000 even with proper documentation and treatment protocols.
5
Pay annually instead of monthly
Monthly payment plans add 6% to 11% in installment fees, which, on a $12,000 policy, costs $720 to $1,320 extra annually. Paying upfront eliminates these charges and earns 5% to 8% discounts from healthcare carriers.
6
Review and adjust your coverage annually
Review your policy whenever you add therapists, expand into specialized services like dry needling or manual therapy, or purchase expensive equipment like AlterG treadmills or laser therapy devices.

Insurance for Physical Therapy Business Cost: Bottom Line

Physical therapy business insurance costs between $6 and $48 per month, though your exact premium depends on factors like your location, claims history and business size. You can save on coverage by comparing quotes from several insurers, bundling your policies, opting for higher deductibles and paying annually instead of monthly.

Physical Therapy Insurance Cost: FAQ

Physical therapy business owners commonly ask about insurance costs. We answered the most frequent questions below:

What is the cheapest type of physical therapy business insurance?

Workers' compensation is the most affordable at $7 monthly, but it only covers employee injuries. Most physical therapy businesses need general liability coverage ($113 monthly) since it protects against client injuries and property damage lawsuits.

How much does physical therapy business insurance cost in expensive states like California and New York?

You'll pay more in these states. General liability in California runs $123 monthly (versus $113 national average), and BOP costs $46 monthly (versus $41 average). New York is similar at $127 and $48, respectively.

How much can I save by bundling my physical therapy business insurance policies?

Bundling delivers greater savings compared to purchasing individual policies. Insurance companies provide discounts when you combine general liability, commercial property and commercial auto coverage under a single provider.

What factors make my physical therapy business insurance more expensive?

Higher premiums result from multiple risk factors: past malpractice claims, treating high-risk patients, expensive specialized equipment, larger staff sizes, poor credit history and operating in litigation-heavy states.

Should I choose a $500 or $2,500 deductible for my physical therapy business insurance?

Higher deductibles reduce monthly premiums but increase out-of-pocket costs during claims. Consider your available cash reserves and anticipated claim frequency when deciding.

How much does workers' compensation cost for physical therapy businesses by state?

Workers' compensation costs for physical therapy businesses vary by state, spanning from $6 monthly in North Carolina to $8 monthly in New York for coverage.

Is business owner's policy (BOP) worth the extra cost for physical therapy companies?

Yes, BOP insurance is worth it for physical therapy companies. At $41 monthly, it bundles general liability, commercial property and business interruption coverage. This package costs less than purchasing separate policies and offers valuable convenience for physical therapy businesses.

How often should I shop around for physical therapy business insurance quotes?

Shop for new quotes each year when your policy renews. Comparing rates from multiple insurers can uncover savings, especially after business changes like hiring staff or expanding services.

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 in 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

We used a typical small physical therapy business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that 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.

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Physical Therapy Business Insurance Cost