What are the minimum coverage limits for Commercial General Liability Insurance required for a Gold Star restaurant?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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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, franchisees must obtain and maintain Commercial General Liability Insurance. This insurance covers claims for bodily injury, property damage, personal injury, death, property and fire damage, and other damaging or injurious occurrences. The minimum per occurrence limit is $1,000,000, with $1,000,000 liquor liability per occurrence if applicable. The minimum general aggregate limit is $2,000,000.
In addition to the Commercial General Liability Insurance, Gold Star franchisees are also required to maintain Commercial Umbrella insurance with a $1,000,000 per occurrence limit and a $1,000,000 aggregate limit. If liquor liability is applicable, the per occurrence limit for the Commercial Umbrella policy increases to $5,000,000. Franchisees must also carry Products/Completed Operations Aggregate coverage with a minimum of $2,000,000.
Gold Star requires that all insurance policies name Gold Star Chili as an additional insured franchisor and include standard waivers of subrogation. The franchisee's insurance must be primary and non-contributory. Franchisees must provide Gold Star with certificates of insurance demonstrating compliance before commencing construction or opening their restaurant. Gold Star retains the right to increase the minimum coverage, decrease the maximum deductible, or require different or additional kinds of insurance with at least 30 days' written notice to reflect inflation, changes in liability standards, higher damage awards, or other relevant changes in circumstances.
It is important for prospective Gold Star franchisees to understand these insurance requirements, as failure to maintain the required coverage can result in Gold Star procuring the insurance on the franchisee's behalf and charging the franchisee for the cost plus interest. Franchisees should consult with an insurance professional to ensure they obtain the appropriate coverage to meet Gold Star's requirements and adequately protect their business.