What does a contract imply regarding an insurance agreement that a contractor must have?

Prepare for the Virginia NASCLA Exam. Use flashcards and multiple-choice questions with hints and explanations to master the material. Ensure success with our resources!

A contract typically includes provisions that outline the responsibilities and expectations of the parties involved, and this includes the requirement for insurance agreements in many cases. When a contractor enters into a contract, it often implies a binding obligation to obtain certain types of insurance. This is essential for protecting both the contractor and other parties, such as clients or stakeholders, against potential risks and liabilities that may arise during the execution of work.

Having insurance as part of the contract means that the contractor must actively seek coverage to ensure that there is a safety net in place for various scenarios, such as accidents, property damage, or other unforeseen incidents. By stating that it is part of the contract, it emphasizes that having insurance is a fundamental requirement tied directly to the performance and validity of the contract, rather than a discretionary option or something that can be ignored or excluded without repercussions.

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