Real Story: How Berxi Helped a Physical Therapist in Small Claims Court

Key Takeaways:

• Even small claims lawsuits can surface years after treatment ends, creating serious emotional, financial, and professional stress.
• Small claims courts typically discourage or limit lawyers’ roles during mediation, but having an experienced attorney is incredibly helpful to prepare you, request important documents, and walk you through your options.
• Berxi helped this PT resolve a claim while safeguarding her license, finances, and peace of mind.

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Most physical therapists go into their profession to help people feel better, move more freely, and regain quality of life. Lawsuits, even “small” ones, are far from top of mind. But as one Berxi insured physical therapist learned, legal issues can arise long after treatment ends, and even relatively modest claims can feel overwhelming without the right support.

Her experience is a reminder that malpractice insurance isn’t just about catastrophic, headline grabbing cases. Sometimes, its biggest value lies in guidance, reassurance, and knowledgeable legal counsel during situations that are stressful, unfamiliar, and emotionally taxing.

An Unexpected Claim, Years Later

In 2025, a physical therapist (PT) received notice that a former patient was suing her in small claims court for $10,000 — the maximum amount permitted in that venue. The allegation: her treatment had exacerbated the patient’s preexisting back pain.

The PT had last seen her patient in 2022. The patient, who had a long history of back pain, said that she’d asked the therapist not to touch certain areas during treatment and alleged that the PT crossed that boundary by touching a certain sore spot.

Cases like these can be challenging, confusing, and stressful. This one involved subjective perceptions of pain, foggy three-year old recollections of a treatment session, and one person’s word against another’s. Luckily, this PT could lean on her malpractice insurance provider for support.

Turning to Berxi for Help

Berxi’s in-house claims team responded to the PT right away.

In this PT’s state, small claims courts generally require parties to represent themselves, without attorneys being present. Instead, a neutral third party helps facilitate discussion to try to reach a resolution. Individuals may consult with legal counsel on their own time but typically cannot bring attorneys to mediation or court sessions.

However, since Berxi clients benefit a great deal from having an attorney help them prepare and navigate through the legal process, this provider was assigned an attorney with extensive experience in circumstances like these. The lawyer reached out immediately and provided the PT with counsel about her case and the next steps.

Understanding the Options, And Finding One More

One valuable thing the attorney provided was clarity. He walked the PT through the small claims process, what mediation entails, how to communicate with the court, and what to expect.

He also identified a possible path: the option to ask the court for permission to have legal representation. While the small claims system is designed for self-representation, sometimes legal representation can be allowed with express permission from the judicial officer.

Following the attorney’s guidance, the PT submitted a formal motion requesting approval for defense counsel to participate in the proceedings. Surprisingly, the court granted the request.

Although the attorney could attend only by phone, simply having legal counsel available was a huge help. The patient (aka plaintiff) chose to continue representing herself, and both parties proceeded with the process.

Preparing for Mediation & Gathering Records

In the meantime, the attorney took several important steps. He requested all relevant medical records and submitted a motion to postpone the mediation so there would be adequate time to prepare.

This preparation mattered. It allowed the PT to review documentation, refresh her memory, and approach mediation thoughtfully. It also gave her space to process the emotional weight of being sued. This is a fact that shouldn’t be underestimated, even for experienced clinicians.

The PT and her attorney discussed possible outcomes and options, assessing the strengths and challenges of defending the claim. The attorney explained that cases like these can be unpredictable — especially if the case goes to court. He also shared that it would be difficult to prove beyond a shadow of a doubt that she wasn’t liable. How could the PT prove that over two and a half years ago, she didn’t touch a certain spot?

The Resolution

After careful consideration, the therapist decided she was open to settling the case but did not want to agree to the requested $10,000. Berxi has a “consent to settle” provision, meaning the company may not settle a case without the policyholder’s explicit permission. The PT’s decision to settle wasn’t an admission of wrongdoing. Instead, it was a practical choice rooted in peace of mind.

During mediation, both parties verbally agreed to resolve the case for $7,000, which would be covered in full by Berxi. However, finalizing the agreement needed more legal attention. Despite the verbal agreement, the plaintiff hesitated to sign and considered taking the case to court for a larger amount.

Here again, having legal counsel proved helpful. The attorney continued to respectfully and patiently follow up with the plaintiff (since she was representing herself), clarifying next steps and helping move the process forward until the settlement documents were finally signed.

Without that support, the therapist might have found herself stuck in limbo, a stressful place to be when it comes to malpractice lawsuits.

Worries About Licensing & Professional Impact

One of the therapist’s biggest concerns wasn’t the settlement amount. It was her license. Like many healthcare providers, she worried about how settling a claim, even without admitting fault, might affect her professional standing. Would it trigger disciplinary action? Would it follow her for years?

Berxi addressed these concerns directly and transparently. The claims team explained that the settlement would be reported to the licensing board, but with important context clearly documented, and there would be no admission of liability. The report also reflected that the settlement was modest and was made to avoid the anxiety and uncertainty of prolonged litigation, not because the therapist believed she had acted improperly.

Understanding this helped the therapist feel grounded and reassured about her future.

Why Small Claims Cases Still Deserve Big Support

In the end, the settlement and legal fees cost Berxi $18,603. This is not an insignificant price that the PT avoided paying out of pocket by having superior-quality malpractice insurance.

This PT’s claim also highlights another important truth: small claims cases may involve lower dollar amounts, but they can still carry significant emotional and professional weight. The experienced legal counsel that malpractice insurance provides can make a huge difference because attorneys:

• Understand procedural nuances that most people don’t
• Know how to communicate effectively with courts
• Can request backup sources, like past medical records from a patient’s primary physician
• Help providers make informed, balanced decisions

Just as important, having an expert on your side brings confidence during an otherwise nerve-wracking time.

The Takeaway for Physical Therapists

Most providers never expect to face a malpractice lawsuit or set foot in court. And many are rightfully proud of their clear communication and careful documentation. But no matter how diligent you are, legal challenges can surface years after care ends — and when they do, preparation matters.

Malpractice insurance, also known as professional liability insurance, isn’t just about catastrophic events. It’s about access to knowledgeable people and funds when you need them most. Berxi has people who can explain your options, advocate for your interests, and help you reach a resolution that protects your career, your financial security, and your peace of mind.

For this physical therapist, having Berxi insurance didn’t just help resolve a case. It helped her feel supported, informed, and confident during a stressful moment in her professional life.

Protect Your Career With Berxi Insurance

If you ever face a malpractice lawsuit or another type of professional challenge, such as a licensing board complaint or a HIPAA violation, you want comprehensive insurance coverage from a provider you can trust. That’s where Berxi comes in.

Berxi is part of Berkshire Hathaway Specialty Insurance Company, which has a financial strength rating of A++ from AM Best. That’s the highest possible rating. In addition, Berxi’s world-class claims team responds within one business day, and its in-house product specialists provide hands-on support when you need it.

Plus, PTs and OTs who choose Berxi save an average of 20% on their malpractice insurance. That’s because Berxi is a direct-to-customer insurer, with no broker fees or hidden costs.

Ready to find the protection you need? Take a couple of minutes to get a quote for malpractice insurance today.

 

Image courtesy of iStock.com/Milan_Jovic

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Image courtesy of iStock.com/mihailomilovanovic

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The views expressed in this article are those of the author and do not necessarily reflect those of Berxi™ or Berkshire Hathaway Specialty Insurance Company. This article (subject to change without notice) is for informational purposes only, and does not constitute professional advice. Click here to read our full disclaimer