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What is a DDoS Attack? How Denial-of-Service Attack is Covered with Cyber Insurance!

What is a DDoS attack?

Hackers often use Distributed Denial of Service attacks to overflow computer systems with an abundance of data to the point that they are rendered inoperable by legitimate users.  In many cases, DDoS attacks are deployed to interrupt the flow of business operations, with the intent of diverting attention away from hackers while they access sensitive information.

This sensitive data can be sold or traded on the Dark Web. This can open up the chain of dealing with liability claims along with 1st party expenses! With careful planning & security measures in place along with cybersecurity insurance, a business can prevent and mitigate the DDoS attack risks. Understand that these attacks are a threat to any company including small businesses.

Is a DDoS Cyber Attack Covered in a Cyber Insurance Policy?


A comprehensive cyber insurance policy would cover this hack attack in the following ways:

  • Cyber Incident Response – forensic experts normally cost $500/hr and work around the clock until everything is fixed. These costs normally range in the tens of thousands of dollars. A comprehensive cyber insurance policy can cover these expenses.
  • Legal & Notification Costs – cyber insurance policy would cover the notification of each affected individual, as well as the cost of a data breach attorney. These specialized attorneys normally charge $500/hr to advise the affected business on how to comply with federal, state, and private “privacy” regulatory bodies. Typically, these legal hourly billables far outweigh the cost to notify each individual of their stolen information.
  • System Damage and Business Interruption – business interruption clause would cover the Insured for income lost as a direct result of the DDoS attack.  It would also cover the cost to rebuild any damaged data or computer systems.
  • Network Security and Privacy Liability – third party liability coverage would cover the defense and settlement of a lawsuit (or multiple lawsuits) resulting from lost or stolen sensitive information.

Be sure to look out for DDOS coverage in your cyber insurance policy. These expenses may sound minuscule individually but when combined following a cyber attack can proven to be a huge rescue to the victim company.

Don’t wait, mitigate!

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