Exploring Insurance Options And Innovations For Contractor Risk Management In Ghana's Construction Industry

Purpose: This study examines various insurance options and innovations for managing contractor risk in Ghana's construction industry. Design: A comprehensive literature review was conducted to identify the existing insurance options and innovations used in other countries for contractor risk management. Additionally, interviews were conducted with construction industry experts and insurance professionals to gather insights and perspectives on the applicability of these options in the Ghanaian context. Value of the Study: This study contributes to the existing literature by providing an in-depth analysis of insurance options and innovations for contractor risk management, particularly within Ghana's construction industry. It highlights significant gaps in awareness and adoption of insurance products, emphasising the necessity for tailored solutions to address the sector's unique challenges. By identifying these gaps, the study offers actionable recommendations for insurers, policymakers, and contractors to enhance risk mitigation and strengthen the resilience of the construction industry. Findings: The study found that traditional insurance options, such as contractor's all-risk insurance and performance bonds, are commonly used in Ghana's construction industry. However, contractors lack awareness and understanding of these options. Moreover, innovative insurance solutions, including parametric insurance and construction defect insurance, have the potential to effectively address specific risks faced by contractors in Ghana. This study contributes to the existing literature by providing an in-depth analysis of insurance options and innovations for contractor risk management, specifically in Ghana's construction industry.