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Investigating The Effectiveness Of Insurance As Risk Management Tool In Construction Industry
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The nature of construction business is risk versed. Most forms of construction contract recognized the use of insurance as risk management tool. Few studies however, evaluates its effectiveness as risk management tool. This study investigated the efficacy of insurance in curbing risks in construction project delivery. The objectives were to identify insurable risks in construction project delivery, identify prevalent insurance policies in the construction industry, and to determine their level of use. Survey questionnaire were administered to 220 targets in the clients, contractors, and consultants organisations and insurance companies in Akwa Ibom state. Data analysis involved descriptive statistics and Relative Important Index. The findings revealed the five most significant insurable risks in the construction industry as injury to person, injury to property and heavy rain, fire, poor construction method and poor site management practices. Further findings revealed the most significant insurance policies in the construction industry are bid bond, contractors all risks insurance, performance bond, motor insurance and third party insurance. The level of use of these insurance policies is however very low and their effectiveness deemed adequate to address construction risks. To promote increased adoption of insurance in construction risk management, awareness of the benefits must be propagated to the common domain.
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CHAPTER ONE - [ Total Page(s): 3 ]Construction insurance
is a practice of exchanging a contingent claim for a fixed payment to
protect the interests of parties involved in a construction project.
Construction insurance is a major method of managing risks in the
construction industry. Its primary function is to transfer certain risks
from clients, contractors, subcontractors and other parties involved in
the construction project to insurers to provide contingent funding in
time of difficulty. Construction insurance ... Continue reading---
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CHAPTER ONE - [ Total Page(s): 3 ]Construction insurance
is a practice of exchanging a contingent claim for a fixed payment to
protect the interests of parties involved in a construction project.
Construction insurance is a major method of managing risks in the
construction industry. Its primary function is to transfer certain risks
from clients, contractors, subcontractors and other parties involved in
the construction project to insurers to provide contingent funding in
time of difficulty. Construction insurance ... Continue reading---
ABSRACT -- [Total Page(s) 1]
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ABSRACT -- [Total Page(s) 1]
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