Assessment of the State of Insurance of Construction Companies in Ghana: A Case Study of Accra Metropolis

DOI

10.2991/978-94-6463-970-4_10How to use a DOI?

Keywords

Construction insurance; Insurance of construction companies; Insurance Awareness; Policy Compliance

Abstract

The insurance landscape for construction companies in Ghana, particularly in the Accra Metropolis, plays important role in mitigating risks and ensuring project success. Considering the significant contribution of the Ghana’s construction industry to the GDP and overall economic growth, effective insurance coverage is essential to improve risk management, industry growth and investor confidence. Despite the importance of insurance in mitigating risks, many construction companies still struggle to obtain adequate levels of insurance coverage. This study therefore assesses availability of insurance packages tailored for construction companies, subscription patterns, and the impact of insurance on the financial stability and resilience of construction companies in the Accra Metropolis. Quantitative approach was adopted for this study. Data was collected through two different sets of questionnaires distributed to 60 medium to large-scale (D1/K1 – D3/K3) construction companies and 10 insurance companies in the Accra Metropolis using random sampling technique. Data was analysed using SPSS version 27, and results evaluated using descriptive statistics.The study revealed that Workers’ Compensation Coverage (65.9%), General Liability (56.1%), and Builders’ Risk Insurance (43.9%) are the most subscribed insurance packages, indicating their importance in protecting construction firms from operational and financial risks. The less common insurance products are cyber insurance (2.4%) and business interruption coverage (2.4%), which have low subscription rates, revealing gaps in the industry’s risk management practices. It was further revealed that insurance companies have customised insurance packages available to construction companies; however, high premium cost, policy complexities and regulatory compliance remain major challenges to construction companies leading to low subscription. The relatively high subscription of the Workers’ Compensation Coverage may be attributed to regulatory compliance. This study provides valuable insights into the insurance landscape of construction companies in the Accra Metropolis highlighting the significance of insurance in mitigating operational and financial risks in the construction industry. The findings are expected to contribute to academic knowledge, provide a basis for future research, and provide improved risk management, industry growth and investor confidence. Most construction companies recognise the importance of insurance, especially its role in managing risks, providing financial security, and covering liabilities, however, high premium cost, policy complexities and regulatory compliance remain major challenges contributing to low patronage. The challenges identified within the existing insurance regulatory framework suggest an urgent need for policy reforms to enhance accessibility, transparency, and trust within the construction insurance sector.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sampson Agudze
AU  - Deborah Esther Agordorku
AU  - Alex Agba
AU  - Roland Senanu Ahlijah
PY  - 2025
DA  - 2025/12/31
TI  - Assessment of the State of Insurance of Construction Companies in Ghana: A Case Study of Accra Metropolis
BT  - Proceedings of the International Conference on Engineering, Science, and Urban Sustainability (ICESUS 2025)
PB  - Atlantis Press
SP  - 119
EP  - 148
SN  - 2352-5401
UR  - https://doi.org/10.2991/978-94-6463-970-4_10
DO  - 10.2991/978-94-6463-970-4_10
ID  - Agudze2025
ER  -