The status of business insurance among Indian Micro, Small, and Medium Enterprises (MSMEs) has historically had a low penetration rate due to limited awareness and perceived financial burdens. Regulatory initiatives, like the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), aim to address this by incorporating insurance components to support MSMEs. The rise of digital platforms and Insurtech companies can contribute to making insurance more accessible by simplifying the process. MSMEs should consider business insurance for risk mitigation, financial protection, legal compliance, and business continuity, as it enhances credibility, aids loan eligibility, provides customized coverage, and addresses cybersecurity risks. Indian MSMEs face low penetration and awareness challenges in business insurance, but regulatory changes, tailored products, digital adoption, government schemes, and changing perceptions may influence the evolving landscape.