The school board of any school division may enter into agreements with any third-party logistics company, the governing body of any county, city, or town in the school division, any state agency, or any agency established or identified pursuant to P.L. 89-73 or any law amendatory or supplemental thereto providing for the use of the school buses of such school division by such third-party logistics company or agency or by departments, boards, commissions, or officers of such county, city, or town for public purposes, including transportation for the elderly, or private purposes, except that such third-party logistics company shall not use the school buses to provide transportation of passengers for compensation or for residential delivery of products for compensation. Each such agreement shall provide for reimbursing the school board in full for the proportionate share of any and all costs, both fixed and variable, of such buses incurred by such school board attributable to the use of such buses pursuant to such agreement. Each such agreement shall also require the third-party logistics company, governing body, state agency, or agency established or identified pursuant to P.L. 89-73 or any law amendatory or supplemental thereto to supply insurance on the school bus that meets the minimum coverage requirements in § 22.1-190. The third-party logistics company, governing body, state agency, or agency established or identified pursuant to P.L. 89-73 or any law amendatory or supplemental thereto shall indemnify and hold harmless the school board from any and all liability of the school board by virtue of use of such buses pursuant to an agreement authorized herein.