News | Kastner Insurance

Why Dental Offices in Louisiana Need Cyber Liability Insurance

Written by Levi Kastner | May 17, 2025 5:41:28 PM

Dr. Anika Patel had built a thriving dental office in Youngsville. Patients loved her friendly team and her sparkling new space. She had the latest digital x-ray equipment, offered online appointment scheduling, and even texted reminders to her patients.

One Tuesday morning, she opened her email to find something strange: a message claiming her patient records had been stolen — and if she didn’t pay up, the hacker would release the data.

She froze.

Then came the calls. Patients asking why their insurance info had been used in fraudulent claims. Emails bouncing back. Her software provider pointing fingers. And finally, a full system shutdown — right in the middle of a busy week of appointments.

In less than 48 hours, Dr. Patel's office had gone from efficient to paralyzed. And the worst part? Her insurance policy didn’t cover a single cent of the damage. She hadn’t added cyber liability coverage.

 

 

Why Cyber Threats Are a Big Deal for Dental Offices

You might think hackers only go after big companies — banks, hospitals, tech firms. But small healthcare providers, including dental practices in Louisiana, are being targeted more and more.

Why? Because you store exactly what cybercriminals want:

  • Names

  • Birthdates

  • Insurance info

  • Social Security numbers

  • Payment card data

  • X-rays and treatment plans

It’s a goldmine of information. And if you don’t protect it — or if you can’t show you responded correctly after a breach — the cost can be overwhelming.

What Is Cyber Liability Insurance?

Cyber liability insurance helps your dental practice respond to and recover from a data breach, ransomware attack, or other cyber event.

It typically covers:

  • Legal costs

  • Patient notification expenses

  • Credit monitoring services for affected patients

  • System restoration

  • Lost income during downtime

  • Reputation management

Think of it as your practice’s financial shield when your digital tools turn against you.

Real Cyber Risks Facing Dental Offices

Here are a few real-world examples we’ve seen affecting dental offices across Lafayette, Baton Rouge, and even smaller communities in Acadiana:

Phishing Emails

Someone on your front desk team clicks a link that looks like it’s from your billing software. Instead, it gives hackers full access to your records.

Ransomware Attacks

A hacker locks your system and demands payment to release it. You can’t schedule patients, pull up charts, or bill insurance — until you pay up (and even then, sometimes they ghost you).

Lost or Stolen Devices

A laptop or USB stick with patient data is lost or stolen, violating HIPAA and triggering an investigation.

Outdated Software

That one update you skipped? It left your system vulnerable. And now patient info is leaking.

Even if you have strong IT protocols, human error is always a factor — and that’s where cyber liability coverage comes in.

The HIPAA Headache

Louisiana dental offices must follow HIPAA regulations, just like any other healthcare provider. If you experience a data breach and don’t handle it properly, the penalties can be steep.

We’re talking:

  • Fines of $100 to $50,000 per violation (up to $1.5 million annually)

  • Required public disclosure of the breach

  • Civil lawsuits

  • Loss of patient trust

Cyber liability insurance helps you comply with HIPAA after a breach — and helps cover the costs of doing so. That includes legal help, forensic investigations, and even communication templates.

What Cyber Insurance Doesn't Cover

Like all policies, cyber coverage has its limits. It won’t pay for:

  • Upgrades you should’ve done before the breach

  • Fines from non-compliance you knew about and ignored

  • Fraud committed by employees (that’s usually a separate coverage)

That’s why it’s important to combine cyber liability coverage with strong internal policies, regular software updates, and team training.

How Much Does Cyber Insurance Cost for a Dental Office?

The good news? It’s probably more affordable than you think.

Most cyber policies for dental offices in Louisiana are based on:

  • How much patient data you store

  • What security protocols you follow

  • Whether you offer online services

  • How many employees have access to sensitive information

You could be looking at a few hundred dollars a year for basic coverage — or more if your practice is larger and stores more data. Compared to the cost of a breach, it’s a smart investment.

What to Look for in a Cyber Policy

Here’s what we recommend dental offices include in their cyber policy:

  • First-party coverage – for direct costs to your business (like lost income and IT repairs)

  • Third-party coverage – for legal defense and settlement costs if patients sue

  • Business interruption – to cover lost revenue during downtime

  • Reputation management – for public relations help if the breach makes the news

  • Data restoration – for repairing or replacing your patient data and systems

Some insurers offer cyber coverage as a standalone policy, while others let you bundle it with your business owners policy (BOP) or professional liability insurance. Either way, it needs to be part of the conversation.

About Kastner Insurance Group

Founded in 2017, Kastner Insurance Group is a full-service, independent insurance broker based in Lafayette, LA. Our insurance agents specialize in offering a variety of insurance products tailored to individual and commercial needs, making sure clients receive personalized and comprehensive coverage options from a variety of insurance companies/insurance carriers.

With over 43 years of combined experience, the team at Kastner Insurance Group is dedicated to providing expert advice and exceptional service. They proudly serve professional offices and businesses across Lafayette city/parish, Youngsville, Broussard, Baton Rouge, New Orleans, Alexandria, Acadiana, and statewide in Louisiana.

Call us today or visit our website for a customized quote.  


Lafayette Insurance, affordable insurance, truck insurance, auto insurance lafayette la, commercial insurance, commercial insurance louisiana, marine insurance, hull insurance