Insurance will cover a lot (and is usually mandatory) but there's a gap between when this kind of thing happens and when insurance pays out. Things like salaries and bills keep coming and there's no income. Sure perhaps a healthy business would have an emergency fund to cover that stopgap but let's be real most local businesses operate pretty month to month in terms of finances. (Also this GoFundMe wasn't even set up by the businesses, I never understand how these things get so many donations because there's nothing stopping the organizer from just pocketing that money)