As the number of cybersecurity incidents in the private funds industry rises, more PE sponsors are turning to cyber insurance to offset the attendant risk. While coverage exists for a variety of potential losses and liabilities caused by cyber incidents, it can be difficult to keep track of the evolving market and understand confusing policy terms. In this three-part series, the Private Equity Law Report interviewed legal and insurance industry experts about the current state of the cyber insurance market and what PE sponsors need to know about this risk-management tool. This second article examines the cost of cyber insurance, how much coverage is necessary and how companies can be savvier about having the right terms in place. The first article highlighted the trend toward increased demand and availability, and included actionable advice on finding the right insurer and navigating the application process. The third article will explore policy management post issuance, as well as how to work with the broker and insurer after a breach. For more on insurance in another context, see “How Can Fund Managers ‘Manuscript’ D&O and E&O Insurance Policies to Broaden Coverage Without Increasing Cost?” (Aug. 22, 2013).