No permit shall be issued unless and until the applicant therefor has filed with the Director of Public Works, with adequate insurance or an adequate bond in a sum sufficient to indemnify the village for any loss, liability, or damage that may result or accrue from or because of the making, existence or manner of guarding or constructing any tunnel or excavation. The bond shall have as surety a corporation licensed to do business in the state as a surety company.
('77 Code, § 99.034)