Every applicant for a permit as required by Section 12.20.020 shall, before the permit is granted, file with the building inspector a continuing bond in the penal sum of one thousand dollars executed by the applicant and a surety company to be approved by the city attorney and conditioned for the faithful observance of the provisions of this chapter and of all sections and laws relating to signs and other advertising structures and which shall indemnify and save harmless the city from any and all damages, judgments, costs or expenses which the city may incur or suffer by reason of the granting of such permit. A liability insurance policy issued by an insurance company authorized to do business in the state, conforming to this section, may be permitted in lieu of a bond. (Prior code § 21-1-4)