Media reports on the effects of climate change on Small Medium Enterprises (SMEs) in South Africa has increased over the
past decade. The amount of loss in terms of assets and infrastructure suffered by SMEs is disturbing. Yet insurance providers
are not eager to insure SMEs and prefer to deal larger organisations. An empirical study of 203 SMEs was done, structured
questionnaires were administered to SME owners. Data was analysed and the results illustrated factors such as the reliability
of an insurer, staff knowledge and brand name of the insurer have a great impact on the decision made by SMEs to build a
relationship with insurance providers. The respondents, who had been approached by an insurance broker and received
training, had a business relationship with an insurance provider. This helps to reach the conclusion that any form of interaction
between SMEs and insurance providers helps to facilitate a business relationship