Risk handling options: Is insurance a fair option to transfer construction risks in Tanzanian construction industry?

Risks management process entails risk identification, analysis, ranking and treatment. The decision of the type of treatment or handling option to be adopted depends on the ranking results. Risks transfer as one risk handling options that is commonly adopted it transfers construction insurable risks into arms of insurers. The main objective of this study is to examine insurance covers available for use in construction projects and their relevance in risk treatment. The study is of cross-sectional design covering two sectors mainly construction and insurance.  The population of the study includes construction stakeholders and insurance agencies. The sample size preferred was 120 respondents. Mixed sampling techniques were used to select respondents and literature review and questionnaires were employed to collect the data. Descriptive statistics were used to analyze the data. Findings reveal that Workers Compensation, Money in Transit, Commercial General Liability, Commercial Crime Coverage, Public Liability, Force Majeure, and Third Party Liability are commonly used insurance covers.  Other mandatory insurance covers mostly mentioned were; Advance Payment Bond, Performance Bond and Professional Indemnity Insurance.  The study concludes that there adequate insurance covers to minimize risks in construction if risk transfer is opted. The study therefore recommends that regulatory boards and professional associations' should conduct sensitization programmes on the use of available insurance covers.