CGL policy must be mutually exclusive. See attached documents for your reference. Understanding the value of contract surety bonds, however, many private owners require contract surety bonds on their construction projects for the same reasons the government does. Business Litigation and Construction Practice Groups.
Either way, the process is not typically a stroke of a check to the claimant by the surety.
If, after it has conducted its independent investigation, the surety decides to perform, it may have a variety of performance options that it must evaluate.