1. Your Other Business Policies Probably Won't Cover It
A lot of owners assume their general liability or business owner's policy (BOP) will step in after a breach. Most won't, or they'll offer a small endorsement that runs out fast. Cyber losses are mostly electronic data, lost income, and response costs, which traditional policies weren't designed for. Check your current policies for cyber or data exclusions before you assume you're covered.
2. Louisiana Law Puts a Clock on You
Under La. R.S. 51:3071 et seq., businesses that own or license computerized personal information of Louisiana residents must notify affected people after a breach, generally within 60 days of discovery. Notice to the Louisiana Attorney General may also be required. Notification means mailing, call centers, and often credit monitoring. A cyber policy can help pay for that work and connect you with people who handle it every day.
3. Small Businesses Are the Target, Not the Exception
Attackers go where the doors are unlocked. Small businesses tend to have fewer IT staff, older equipment, and shared passwords. Automated attacks don't care whether you're on Poydras Street or a gravel road in Maurice. If you have email and a bank account, you're on the list.
4. Storm Season Is Phishing Season
After every major storm, inboxes fill with fake FEMA notices, relief fund links, insurance claim "updates," and contractor invoices. Staff are stressed, working from wherever they can, and more likely to click. Some cyber policies include coverage for social engineering losses, but it's often limited and has to be requested. Ask about it specifically.
5. Carriers Expect the Basics Before They Quote
Cyber underwriting has gotten stricter. Many carriers now expect to see:
- Multi-factor authentication on email, remote access, and admin accounts
- Regular, tested backups kept separate from your main network
- Endpoint detection software on computers and servers
- Employee phishing awareness training
- A plan for installing security updates
Missing these doesn't always mean a decline, but it can mean higher premiums or narrower coverage. And answering the application inaccurately can create problems at claim time.
6. Your Vendors Are Part of Your Risk
Your managed IT provider, payroll company, practice management software, and payment processor all touch your data. If one of them gets breached, your customers may still look to you. Ask how your policy handles incidents that start with a vendor, and check what your vendor contracts say about who pays.
7. Coverage Varies More Than You'd Think
Two cyber policies with the same limit can look completely different once you read them. Sublimits, waiting periods, and exclusions change what you'd actually collect. That's why comparing quotes line by line matters. We cover the pieces in What Cyber Insurance Covers for Louisiana SMBs.
Talk It Through With Us
Kastner Insurance Group helps Louisiana businesses understand their cyber exposure and compare options from multiple carriers. Coverage is subject to policy terms, conditions, and exclusions. Call 337-291-0018 or contact us to get started.
Next in the series: What Cyber Insurance Covers for Louisiana SMBs
Levi Kastner
