Final answer:
Business interruption insurance is similar to short-term disability insurance but is designed to protect businesses against income loss due to physical plant disasters, ensuring continuity of operations.
Step-by-step explanation:
The function that is similar to short-term disability insurance but protects businesses against physical plant disasters is business interruption insurance. Unlike worker's compensation insurance, which provides benefits to workers who suffer an injury on the job, and pension insurance, which secures pensions for employees if a company goes bankrupt, business interruption insurance covers the loss of income that a business suffers after a disaster. This type of insurance is crucial for ensuring business continuity during unexpected events that disrupt operations.