(a) The corporation may purchase or otherwise acquire insurance to protect members of the board of directors and employees of the corporation, subject to Subsection (c).
(b) Insurance purchased or acquired by the corporation under this section may:
(1) protect against any type of liability to third persons that might be incurred while conducting corporation business; and
(2) provide for all costs of defending a cause of action for such liability, including court costs and attorney's fees.
(c) This section does not authorize the purchase or acquisition of insurance to protect against liability not described in Subsection (b).
Official text of the Texas Education Code as published by the Texas Legislative Council.