This paper attempts to build an output model including family entrepreneurship decision making, and systematically analyzes the mechanism of inclusive insurance to promote family entrepreneurship and alleviate the gap between the rich and the poor; Based on the data of CHFS and intermediary effect model, this paper empirically investigates the relationship between inclusive insurance, family entrepreneurship and the gap between the rich and the poor. The study found that: the promotion of family entrepreneurship by inclusive insurance is important mechanisms to the alleviation of the gap between the rich and the poor; Through its permeability and availability, inclusive insurance plays an extensive role in ensuring that it can be used in a timely manner by simplifying the compensation process, reducing the uncertain risk losses faced by families, encouraging families to start businesses, thereby expanding family income and alleviating the gap between the rich and the poor; Family entrepreneurship has further promoted the role of inclusive insurance in narrowing the gap between the rich and the poor; Inclusive insurance improves the willingness of family entrepreneurship by reducing the risk aversion of family entrepreneurship; The role of inclusive insurance in promoting family entrepreneurship and alleviating the gap between the rich and the poor is different in urban and rural families. Further expansion of the study found that the role of inclusive insurance in alleviating the gap between the rich and the poor by promoting family entrepreneurship has regional heterogeneity. It has a significant positive role in the eastern region, a non significant role in the western region, and a greater negative role in the central region; In high income families, inclusive insurance will further significantly expand the gap between rich and poor; In low income families, inclusive insurance can promote family entrepreneurship and narrow the gap between rich and poor, but its effect is limited; When the level of economic development is high, inclusive insurance can significantly reduce the gap between rich and poor. When the level of economic development is low, the effect of inclusive insurance is reduced and not significant. It is beneficial to further promote the role of inclusive insurance in narrowing the gap between rich and poor by strengthening the publicity of inclusive insurance services, improving family financial literacy, fully integrating commercial insurance platforms with inclusive insurance, and promoting the hierarchical design of inclusive insurance products for intermediate income groups.