Businesses face various financial risks, including operational disruptions, market fluctuations, and unforeseen events such as natural disasters and legal liabilities. Insurance plays a crucial role in mitigating these risks, ensuring business continuity, and promoting long-term sustainability. This study examines the adoption and effectiveness of business insurance among small and medium enterprises (SMEs) and large enterprises in Bangalore Urban. It explores the awareness, challenges, and decision-making factors influencing businesses to invest in insurance policies. Through qualitative and quantitative analysis, the research highlights the role of insurance in financial stability, risk reduction, and business growth. The findings aim to provide insights for businesses, policymakers, and insurance providers on enhancing risk management strategies through tailored insurance solutions.