You actually want insurance for this because you don't want, for example, small businesses avoiding fertile women because they "already have too many pregnancies right now". If all the employees had kids simultaneously (an irrelevant random event), it shouldn't cause a bankruptcy.
In practice, people aren't typically so fungible, but the insurance at least hedges the salary portion of the risk.
You actually want insurance for this because you don't want, for example, small businesses avoiding fertile women because they "already have too many pregnancies right now". If all the employees had kids simultaneously (an irrelevant random event), it shouldn't cause a bankruptcy.
In practice, people aren't typically so fungible, but the insurance at least hedges the salary portion of the risk.