Vt. Stat. tit. 24 § 1092
By its legislative branch, as defined by section 1751 of this title, a municipal corporation may contract in the name of the municipality with an insurance company authorized to do business in this State to secure the benefits of all forms of insurance for the employees of the municipality, and for all forms of liability insurance but not limited to liability insurance to cover motor vehicles owned and operated by the municipality, and drivers thereof, and for fire, extended coverage, general liability insurance to cover public building, premises, and activities of the municipality, and liabilities which may accrue to the municipality under sections 901 and 902 of this title on any terms and conditions as to contributions and costs as the legislative branch shall determine. Provisions for the insurance heretofore made by a municipality are hereby approved. In addition, a municipal corporation may secure insurance to cover liabilities which may accrue to the municipality under section 901 of this title.
24 V.S.A. § 1092