Final answer:
Disability Insurance best addresses concerns about financial survival for small business owners in the event of a disability, as it provides replacement income during periods when they cannot work.
Step-by-step explanation:
The policy that BEST addresses small business owners' concerns about financial survival in the event of disability is C. Disability Insurance. This type of insurance is specifically designed to provide income to individuals who are unable to work due to a disability. While other forms of insurance like property, health, and life insurance offer important coverage for other risks, disability insurance is tailored to replace a portion of the policyholder's income when they are disabled and unable to perform the tasks of their occupation.