What type of bond protects the governmental body from damages caused by the principal's activities?

A Public Official Bond is designed to protect the governmental body from any damages or losses that may arise as a result of wrongdoing or negligence by the official or principal. This type of bond assures that public officials will perform their duties honestly and faithfully, adhering to relevant laws and regulations. If the principal fails to do so and a loss occurs due to their actions, the bond provides a source of compensation for the governmental body.

This bond serves to provide security not just for the officials but also for the public, ensuring that there is accountability in the management of public funds and resources. It promotes integrity within public office by mandating that officials have this financial backing.

In contrast, an Indemnity Bond is typically focused on protecting one party from losses caused by another, often in business transactions, rather than specifically addressing the actions of public officials. A Contract Bond ensures the completion of a contract, while a Bid Bond guarantees that a bidder will enter into a contract if awarded. None of these bonds provide the same specific protection for governmental bodies that the Public Official Bond does.