(a) The Mayor, Councilmen, school board members and planning and zoning members shall be defended, indemnified and held harmless against loss as a result of any official action they may take. Official action is defined for purposes of this section as an action or comment or motion or other act made in a meeting where at least a quorum of members is present and the Clerk or Secretary has declared that the meeting is lawful.
(b) A city official acting on behalf of the city shall be defended, indemnified and held harmless against claims, lawsuits and any loss. Acting on behalf of the city shall be defined for purposes of this section as acting in a manner such that the result of the action could be construed as beneficial to the community or that the intent of the action was reasonable under the circumstances or that such act or omission was without malicious intent and was within the scope of their authority or employment.
(c) In the event the city secures errors and omissions insurance, the city shall pay any deductible amount attributable to any official above named as a result of any claim against the insurance.