What kind of expenses does "data breach insurance" often cover?

Data breach insurance is specifically designed to address the unique financial risks associated with data breaches. The correct answer highlights that this type of insurance often covers fees for legal representation and customer notifications following a breach.

When an organization experiences a data breach, it can incur significant costs related to legal fees, which may be necessary for defending against claims that arise from the breach. Additionally, businesses are typically required to notify affected customers about the breach, which can further increase expenditures. This responsibility includes costs for mailing notifications, setting up call centers, and potentially offering credit monitoring services to those affected. Therefore, having coverage for these expenses is essential for protecting companies from the financial implications of data breaches.

In contrast, other options such as covering physical damages, employee salaries during the breach, or market analysis expenses do not align with the primary focus of data breach insurance. This insurance is tailored to address the data security landscape rather than broader operational costs or unrelated financial concerns.