Which type of coverage addresses costs related to notifying affected parties after a security breach?

The correct answer is focused on the specific coverage intended to address the costs that arise from notifying affected parties following a security breach. Security breach expenses are critical for businesses that have experienced a data breach to manage their financial responsibilities, which can include legal fees, credit monitoring services for affected customers, and the overhead of communicating the breach clearly and transparently to stakeholders.

This type of coverage directly supports businesses in mitigating damages associated with breaches of sensitive information, allowing them to maintain customer trust and comply with legal and regulatory notifications.

Understanding the nuances of these coverages is essential, especially in today's environment where data security is paramount. Other options may cover related but distinct financial impacts of incidents, such as loss of income or public relations efforts, but they do not specifically target the obligations tied to notifying stakeholders about a security breach.