Fundamentals of Construction Risk Management and Insurance

Course Description
This course—Fundamentals of Construction Risk Management and Insurance—provides a general overview of the risk management process, including the loss exposures of most concern to contractors and the risk management tools that are used to treat them. It discusses the common features of property and casualty insurance policies that govern who is covered and what is covered. The property and casualty insurance coverages that contractors typically buy are described along with a review of how they match up with the important exposures. The most commonly used loss sensitive rating plans and risk finance programs are also briefly reviewed. Lastly, the operation of the insurance industry is discussed from an insurance buyer’s perspective to provide insight into the roles and responsibilities of underwriters, agents, brokers, and adjusters.

Learning Objectives
Students who successfully complete this course will be able to:

  • identify the primary risks of loss faced by construction companies and apply the risk management process in managing these risks
  • distinguish among the various techniques used to manage risk, including risk retention, contractual risk transfer, risk control, insurance, and risk finance
  • recognize the various provisions in an insurance policy that govern how coverage applies
  • identify the essential elements of commercial general liability, commercial auto, workers compensation, umbrella liability insurance, builders risk, contractors equipment, commercial property, and commercial crime insurance
  • recognize the essential elements of guaranteed cost, deductible, retrospective rating, and dividend plans and of such alternative market risk finance approaches as captive insurance companies and risk retention groups
  • identify the processes involved in procuring property-casualty insurance and adjusting claims

Prerequisites: A basic understanding of risk management principles.


International Risk Management Institute, Inc. (IRMI) is the premier provider of risk and insurance continuing education and reference publications, and is considered the ultimate authority by leading insurance practitioners. Written by industry experts, IRMI courses provide the most up-to-date, practical and reliable information possible.

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