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

The type of bond that protects the governmental body from damages caused by the principal's activities is a public official bond. This bond serves as a guarantee that public officials will perform their duties faithfully and in accordance with the law. If the official fails to do so, causing harm or loss to the governmental body, the bond provides financial compensation for those damages.

Indemnity bonds, while they do involve one party compensating another for losses, generally cover different types of scenarios, such as protecting against losses incurred from a specific type of risk. Contract bonds and bid bonds are more focused on ensuring that contractors fulfill their obligations under construction contracts and secure bids respectively, rather than protecting governmental entities against the actions of officials.