THE USE OF INSURANCE AS A MAJOR TOOL IN RISK MANAGEMENT IN THE GHANAIAN CONSTRUCTION INDUSTRYT

Construction works are hazardous by nature and accidents are frequent and often severe. The annual toll of deaths, bodily injuries and property damage in construction world is very high. Not only this but construction works involve large amount of investment especially in public projects. All of this increases the risk of construction business and makes handling of financial matters more critical. Insurance and Surety are some of the methods utilized by the contractors and client as risk controlling mechanisms. There is a growing body of interests in construction insurance, supporting interactions between the construction industry and the insurance industry. The main aim of the research was to conduct an investigation into how insurance is used as a risk transfer tool in the Ghanaian construction industry. The existing literature on construction insurance was reviewed in the light of this analysis to identify key gaps in knowledge and help to focus further the research priorities. The research methodology comprised a questionnaire survey supplemented with interviews among Clients, Consultants, Insurance Companies and Contractors (mainl