The Town Board may authorize the Town Manager, on behalf of the town, to contract with one or more insurance companies authorized to do business in this state to protect the town, and town officers and employees while acting in line of duty, against losses arising from public liability, fire, theft, hail, windstorm and other causes, the amount and terms of policies to be as prescribed by the Town Board and agreed upon by the insurers.
(1991 Code, § 34.02)