As used in this chapter, the following terms shall have the meanings indicated:
Any report, formal or informal, of a demand for compensation for damages for injuries allegedly caused by an employee as defined herein. The term shall include, but shall not be limited to, all demands for damages before any court or agency for bodily injury, property damage and violation of civil or constitutional rights, including false arrest, inverse condemnation and causes of action arising under 42 U.S.C. § 1981 et seq.
Any person employed by the Township of Galloway, including elected officials, constitutional officers and their employees, and volunteers performing services on behalf of the Township of Galloway while actually performing those services. The term does not include persons or entities performing services under a nonemployment contract with the Township of Galloway.
The cost of defense, which may, at the township's option, be provided by the Galloway Township Solicitor or pursuant to coverage under any policy of insurance or by private counsel, and all sums which the employee would be legally obligated to pay as compensatory damages or in settlement of any claim against the employee for matters arising from or related to actions taken in the course of employment with the Township of Galloway, whether the claim is presented during the period of the employee's employment or thereafter, and shall include the payment of salary or wages for any employee who, by reason of an indemnified claim, is absent from his work station for the purpose of attending legal proceedings or other business in connection therewith and the Township of Galloway would otherwise be responsible for payment of the employee's salary or wages. The term shall also include all sums which the employee would be legally obligated to pay in the nature of exemplary or punitive damages in the event that the Galloway Township Council shall be of the opinion, upon the advice of the Township Solicitor, that the acts committed by the employee upon which the damages are based did not constitute actual fraud, actual malice, willful misconduct or an intentional wrong, pursuant to Chapter 340 of the Laws of 1987 (N.J.S.A. 59:10-4, as amended). The determination of a civil court shall not preclude a finding by Council that indemnification is warranted.