Insurance and risk management strategies effect on construction projects

constuction insurance is a practice of exchanging a contingent claim for a fixed payment To protect the interests of parties involved in a construction project. Construction Insurance is a major method of managing risks in the construction industry. Its primary Function is to transfer certain risks from clients, contractors, subcontractors and other Parties involved in the construction project to insurers to provide contingent funding in Time of difficulty. Construction insurance plays an increasingly important role in Guaranteeing the success of projects, with insurers sharing losses resulting from natural Disasters and other contingencies. However, insurance sometimes doesn’t receive the Attention it deserves because practitioners do not have a clear understanding of risk Allocation and the strategy of risk management through insurance.