Appraisal of the Drivers for Adopting Health and Safety Insurance Policy by Construction Firms in Abuja, Nigeria

Abstract

Abstract. Building projects have the greatest challenges because time, money, and quality are prone to change and have financial implications. Because of this extreme unpredictability, conventional construction contracts mandate that contractors get insurance and indemnity for all project-related works and personnel. Despite a growing understanding that insurance should be the primary tool for risk management, few contractors in Nigeria have utilized it. The study's objective was to evaluate the drivers that influence construction companies to adopt health and safety insurance. The respondents for the survey include Architects, Builders, Engineers, Quantity Surveyors, and Health and Safety Officers within the targeted construction firms in Abuja were surveyed using a questionnaire as part of a quantitative research approach with the adoption of convenience sampling. Retrieved data were analyzed using mean item score and standard deviation. The study discovered that construction firms regularly implement insurance policies based on drivers like project and contractor size; type of project; and unique project complexities among others. Conclusively, health and safety insurance is a helpful tool for risk management in building projects, and project characteristics have a significant impact on contractors' decisions to use insurance, the adoption of this policy is crucial without any reservation since worker's safety is more important than building projects, the adoption of the policy should be without any reservation, as this will limit hazards and allow due compensation for injuries or accidents on construction site. This study recommended that construction firms and legal authorities should devise a strategic approach to implementing the practice without paying attention to the drivers