(A) Purchase of. The Village Board shall have the power to purchase liability insurance covering and insuring all municipal officers, employees and elected officials; said 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. 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.
(B) Indemnification.
(1) If the Village Board elects not to purchase liability insurance covering and insuring municipal officers, elected officials and employees as provided in this section, then the village shall indemnify and cause to defend municipal officers, elected officials and employees from any claim filed by an individual, partnership or corporation when the claim is founded on any act or omission of the municipal officers, elected officials or employees while in the performance of their official duties, except the village shall not indemnify, but shall defend any municipal officer, elected official or employee from any claim made by an individual, partnership or corporation wherein the claim alleges that the municipal officer, elected official or employee acted intentionally, maliciously or wantonly and further, shall not indemnify or cause to defend the officials or employees where the claim is directly or indirectly related to the negligent care or use of a vehicle as defined by state statutes, and the village shall not indemnify any municipal officer, elected official or employee from any claim made by a municipal officer, elected official or employee.
(2) Notwithstanding any other provision of this code, the village shall not indemnify or cause to defend any municipal officers, elected officials or employees if the municipal officers, elected officials or employees have liability insurance insuring the municipal officers, elected officials or employees from the alleged claim; however, the village shall indemnify the municipal officer, elected official or employee the personal deductible limits of his or her personal policy (see 745 ILCS 10/2-201 et seq.)
(1999 Code, § 1-2-25)