(a) A town, city, incorporated, or union school district, and a supervisory union shall indemnify and save harmless to the extent of the policy limits provided in subsection (b) of this section, any person employed by the school district or supervisory union and any member of its executive, supervisory, or administrative staff, including members of the school board, from financial loss and expense, including reasonable legal fees and costs, if any, arising out of any claim, demand, suit, or judgment by reason of alleged negligence or other act resulting in accidental injury to a person or accidental damage to or destruction of property, within or outside the school building, provided that the indemnified person at the time of the accident resulting in such injury, damage, or destruction, was acting in the discharge of his or her duties within the scope of his or her employment or under the direction of the board of the school district or of the supervisory union.

(b) Each board of a school district or a supervisory union shall insure against the liability imposed upon it by this section in any insurance company organized in this State or in any insurance company of another state authorized by law to write insurance in this State, or through participation in an intermunicipal insurance agreement established under 24 V.S.A. chapter 121, subchapter 6, with minimum coverage in the form of a comprehensive general liability policy including liability for the operation of owned and nonowned motor vehicles and including the employees as additional insureds and with minimum limits of not less than $500,000.00 per person and $2 million per occurrence for bodily injury and for property damage.

(c) Each board of a school district or a supervisory union required to insure against the liability imposed upon it by this section shall furnish proof of insurance with the minimum limits prescribed by this section to the Secretary of Education, which shall be evidence of the insuring against the liability and property damage required by this section. In the event of cancellation, the board shall provide at least 30 days' prior notice of cancellation to the Secretary. (Added 1969, No. 123; amended 1975, No. 48, § 13, eff. April 15, 1975; 1975, No. 100, § 1; 2003, No. 36, § 12; 2003, No. 107 (Adj. Sess.), § 10, eff. Jan. 1, 2005; 2005, No. 182 (Adj. Sess.), § 5; 2013, No. 92 (Adj. Sess.), § 171, eff. Feb. 14, 2014.)