(A) The Village Board shall have the power to purchase liability insurance covering and insuring all municipal officers, employees and elected officials. The insurance to cover incidents occurring while in the performance of their duties, which insurance may insure, cover and protect any liability which the municipal corporation, officer, employee or elected official may incur.
(B) When the insurance has been purchased, the village shall be responsible for all premiums and deductible charges called for by any valid liability insurance policy covering the municipal corporation, officer, employee or elected official.
(`92 Code, § 1-2-32)