§ 50729 Insurance Requirements For Improvements

• •A contract can say what kind of insurance is needed for a project.
• •The contract can also say how much insurance is needed and what it covers.
• •If there's insurance money paid out, the contract can say how that money is used.

A school builds a new playground and signs a contract for it.

The contract says the school must have insurance in case someone gets hurt on the playground. If someone does get hurt and the insurance pays money, the contract says that money must be used to fix the playground, not for something else.