ABSTRACT
Insurance in the construction industry involves swapping or transferring a contingent claim for a definite amount to protect the interests of the stakeholders undertaking a construction project as a primary way of handling risks. This research aimed at assessing risk factors in the selection of contractor insurance options in the construction industry. The literature review was undertaken to identify risk factors associated with contractor insurance provision and select contractor insurance options. A quantitative research method was adopted, utilizing a structured questionnaires to elicit empirical data from contractors, consultants and insurance officers in Kumasi. The findings showed that exchange; rate fluctuation, unrealistic contract duration, inaccurate estimating, interference from clients, mistakes in design documents, inadequate contractor experience and materials damage were the most significant risk factors in construction projects. The study recommended that insurance provisions could assist contractors to proactively manage the construction risk and other risk factors associated with construction sector.
