(1) The boards of directors of the respective school districts of this state may, upon approval of the majority of the members thereof, purchase liability insurance to protect the individual members of the board of directors from legal liability for activities arising out of duties as a director, including liability arising out of alleged malfeasance, errors, omissions, wrongful acts not related to bodily injury or property damage, and other actions taken in the performance of their duties as directors.
(2) The board of directors may pay the premium on the liability insurance policy from funds belonging to the school district.