(a) The board of school directors in every school district shall have full power and authority to make and enter into any contract or contracts it may deem proper with any person, firm or corporation, including any mutual fire insurance company authorized to transact business in this Commonwealth, for the purpose of insuring against loss or damage by fire, or otherwise any or all of the school buildings or other property owned or leased by the school district.

(b) The board of school directors in every school district shall have full power and authority to make and enter into any contract or contracts it may deem proper with any person, firm or corporation, including any mutual insurance company authorized to transact business in this Commonwealth, for the purpose of insuring every employe and school director of the school district against liability for damages sustained by pupils or others as a result of the employes' or directors' negligence in the performance of his or her duties during the course of his or her employment or the performance of his or her duties.

(c) No contract or contracts of insurance authorized by this section shall be purchased from or through any person employed by the school district in a teaching or administrative capacity.