Whenever a civil action has been or shall be brought against any person for any act or omission arising out of and in the course of the performance of that person’s duties as a member of a board of education, principal, assistant principal, superintendent, assistant superintendent or professional employee, including a teacher, the board of education of that school district shall defray all costs of defending such action, including reasonable counsel fees and expenses, together with costs of appeal, if any, and shall save harmless and protect such person from any financial loss resulting therefrom; provided, however, the board of education shall not be responsible for the payment of punitive damages nor damages attributable to intentional acts or the gross negligence of such person. Any board of education may arrange for and maintain appropriate insurance to cover all such damages, losses and expenses. The State shall not be liable for such financial obligation incurred by a local school district.