Table 3 shows respondents’ level of agreement on the extent transfer of risks to insurance businesses, is the most suitable method for handling road construction risks in Nigeria. As observed, it is currently ineffective. While it is generally accepted that risk transfer is the most can be a cost effective way of managing risks (Surminski and Oramas-Dorta, 2014), it is not without its demerits which makes it ineffective in some countries. Arooz & Halwatura (2015) observed that even though insurance is one method used in Sri Lankan construction industry to manage risks; but sometimes insurance claims are disclaimed and payments denied by insurers as a result of technical exclusions existing within the policy or simply because policy claim conditions and procedures have not been strictly followed by the insured contractor. This is no different from the typical Nigerian system where insured parties are denied claims for reasons similar to the findings of Arooz & Halwatura (2015).