Every applicant for a certificate of license as an underground utility contractor to carry on the business of installing, repairing or servicing, altering or replacing sewer lines, storm drainage lines, or water lines and related services in accordance with this chapter, shall furnish a bond, satisfactory to the board, in the sum of twenty thousand dollars ($20,000), conditioned substantially that the applicant indemnifies and holds harmless the several cities and towns of this state and their officers from all suits and actions of every name and description brought against any of those cities, towns, and state, or any of their officers for, or on account of, any injuries or damages received or sustained by any person in consequence of, or resulting from, any work performed by the applicant or its employees, servants, or agents; or of or from any improper materials used in the work; or of or from any negligence in guarding the work; or of or from any act or omission of the applicant, or its employees, servants, or agents.