25.1 Except in cases of malfeasance in office or willful or wanton neglect of duty, the Employer shall defend, save harmless or indemnify an employee against any tort claim or demand, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance and scope of the employee's duties. Such decisions by the Employer will be made on the merits of each individual occurrence.

All employees covered by the Agreement shall be covered under personal injury liability insurance covering such items as false arrest and direct physical injury.

Policy limits shall be as follows:

• $140,000 bodily or personal injury
• $1,000,000 for length of one year.