As a condition of the issuance of a permit, the permit holder shall agree to pay on behalf of the city all sums which the city shall be obligated to pay by reason of any liability imposed upon the city for damages of any kind resulting from the placement or maintenance of an encroachment, whether sustained by any person or persons, caused by accident or otherwise, and to defend at its own expense and on behalf of the city any claim against the city arising out of the placement or maintenance of said encroachment on public property. (2007 Code § 41-117)