Is boiler machinery insurance required for a Gold Star restaurant, and under what condition?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
criteria for supplier approval available to Franchisees.
Insurance.
Before opening your Restaurant, you must obtain, and maintain at all times during the term of your franchise agreement, the following insurance coverage:
- Special Perils Insurance including theft on the Restaurant to include but not limited to all furniture, fixtures, equipment, signs (attached and unattached), exterior glass, supplies and other property used in the operation of the Restaurant (including flood and/or earthquake coverage where applicable,) for the full repair and replacement value with no coinsurance clause or applicable agreed amount.
- Boiler machinery insurance, provided any Building on the Premises contains equipment of the nature ordinarily covered by such a policy
- Flood Insurance if any material portion of the Premises is located in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards
- Plate glass insurance Covering the glass in the Premises.
- Commercial General Liability Insurance covering claims for bodily injury, property damage and personal injury, death, property and fire damage, and other damaging or injurious occurrences, with a minimum per occurrence limit of $1,000,000, $1,000,000 liquor liability per occurrence if applicable and a minimum general aggregate limit of $2,000,000.
- Commercial Umbrella $1,000,000 per occurrence, $1,000,000 aggregate. $5,000,000 per occurrence if liquor liability is applicable.
- Products/Completed Operations Aggregate with a minimum coverage of $2,000,000.
- Business Interruption Insurance for actual losses sustained or 12 months.
- Worker's Compensation Insurance and Employer's Liability (STOP GAP) that complies with the statutory requirements of the state in which the Restaurant is located and Employers' Liability Insurance with a minimum limit equal to or greater than the statutory minimum limit required by state law.
- Automotive $1,000,000 Combined Single Limit (CSL) for hired and non-owned automobiles.
- Any other insurance coverage that may be required by your lease.
- Recommended: Employment Practices Liabil
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–25)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, boiler machinery insurance is required under specific conditions. Before opening a Gold Star restaurant, franchisees must obtain and maintain several types of insurance coverage throughout the term of the franchise agreement. One of these is boiler machinery insurance.
However, this insurance is only mandatory if the building on the premises contains equipment of the nature ordinarily covered by such a policy. This means that if the Gold Star restaurant location has boiler machinery, the franchisee must secure boiler machinery insurance.
In addition to boiler machinery insurance, Gold Star franchisees are required to maintain other insurance policies, including special perils insurance, flood insurance (if the premises are in a flood hazard area), plate glass insurance, commercial general liability insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate, commercial umbrella insurance, products/completed operations aggregate insurance, business interruption insurance, worker's compensation insurance, and automotive insurance. Franchisees must also adhere to any other insurance requirements stipulated in their lease agreements. It is also recommended that franchisees obtain employment practices liability and cyber liability insurance.