Hiring Fred qualifies as incidental damages. Incidental damages are damages reasonably incurred incident to the breach. Hiring Fred is an expense incident to Mason's breach and, as stipulated in the example, is a reasonable expense.
Hiring Super Secure is also an expense incident to the breach, but it is almost certainly not reasonable. Only in the most extraordinary circumstances would it be reasonable to spend $40,000 to protect goods worth only $2000.