If you’re a Mississippi business owner dealing with insurance delays after fire damage, storm loss, or business interruption, you’re likely frustrated. You’ve paid your premiums for years expecting your insurer to honor the policy when disaster strikes. But now, your claim is sitting in limbo—or worse, it’s being unfairly denied. What can you do while the insurance company keeps you waiting?
This is a common scenario. Many business owners ask, “Can I file a lawsuit while my insurance claim is still pending?” The short answer is yes—but there are important legal considerations that can affect the outcome of your case.
At Barrett Law, PLLC, I’ve spent decades helping businesses across Mississippi hold insurance companies accountable. My name is Jonathan Barrett, and as a Mississippi business interruption and fire insurance claim lawyer, I know the pressure that comes with these types of disputes. Whether you’re facing stalled payments, unjust denials, or accusations of fraud, I’m here to guide you through the process and help you fight for the compensation your business deserves.
Let’s explore your rights, the legal protections available under Mississippi law, and when it makes sense to file a lawsuit even while your claim is still open.
What Happens When Insurance Companies Stall?
Insurance companies have a legal obligation to investigate claims promptly and make reasonable decisions based on the evidence. Unfortunately, many delay payments or avoid clear decisions in hopes that the policyholder will give up or accept less.
In Mississippi, tactics we commonly see include:
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Requesting unnecessary documentation repeatedly
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Delaying inspections or sending multiple adjusters
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Making lowball settlement offers far below the actual loss
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Suggesting that the damage isn’t covered despite clear policy language
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Accusing the policyholder of fraud without evidence
These are signs of potential bad faith, a legal term referring to unfair or deceptive practices by insurance companies.
Can You File a Lawsuit While the Claim Is Still Pending?
Yes. In Mississippi, you are allowed to file a lawsuit while your insurance claim is still open—especially if you suspect the insurer is intentionally delaying or acting in bad faith. There’s no requirement that you must wait for a formal denial before suing, although a delay long enough to affect your business operations can be treated similarly to a denial in court.
Mississippi recognizes first-party bad faith lawsuits under both contract and tort law. You can sue not only for breach of contract, but also for punitive damages if the insurer’s conduct is especially malicious or deceptive.
How Mississippi Law Protects Policyholders from Insurance Abuse
Mississippi courts take insurance misconduct seriously. Under the Mississippi Unfair Claims Settlement Practices Act (Miss. Code Ann. § 83-5-301 et seq.), insurers must:
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Acknowledge claims promptly
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Provide reasonable standards for processing claims
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Attempt in good faith to settle claims fairly
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Avoid forcing litigation by offering unreasonably low settlements
Additionally, common law bad faith applies in cases where an insurer unreasonably withholds benefits due under a policy.
If an insurer’s failure to pay is found to be without an arguable basis and done with malice or reckless disregard, Mississippi courts may award punitive damages to punish the insurer and deter similar conduct in the future.
Who Is Affected and Why It Matters
Small businesses, medical practices, property managers, manufacturers, retailers, and other commercial property owners often suffer the most from insurance delay tactics. Every day without a payout is another day the business bleeds money—from payroll, rent, and operational losses to mounting debt and disrupted supply chains.
Insurers know this. Delays are often strategic, banking on the business owner’s desperation to force quick, low settlements.
Barrett Law, PLLC helps level the playing field. I work with Mississippi businesses who’ve been harmed by insurance stall tactics or bad faith denials to pursue recovery through legal action. I help clients recover:
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Full policy benefits
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Damages for consequential losses
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Legal costs
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Punitive damages (in bad faith cases)
Legal Obligations & Statutes in Mississippi
Mississippi insurance law is rooted in both statutory and case law. Key statutes and doctrines include:
1. Miss. Code Ann. § 83-5-301 to § 83-5-321
This statute defines unfair or deceptive insurance practices and prohibits insurers from engaging in conduct such as:
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Failing to acknowledge communications within a reasonable time
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Refusing to pay claims without conducting a reasonable investigation
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Not attempting in good faith to settle claims
2. Common Law Bad Faith (Southern Farm Bureau v. Holland, 469 So. 2d 55)
Mississippi courts recognize a tort claim for bad faith when an insurer lacks an arguable reason for denial and acts with malice or reckless disregard for the rights of the insured.
3. Punitive Damages – Miss. Code Ann. § 11-1-65
If bad faith is proven, policyholders may be awarded punitive damages as punishment for egregious insurer behavior.
Practical Advice: What Should You Do If Your Claim Is Being Delayed?
If your claim is dragging out with no resolution in sight, here are the steps to take:
Document Everything:
Keep a record of all communications, emails, letters, and phone calls with your insurer. Save copies of all claim submissions and adjuster reports.
Request Clarification in Writing:
Ask the insurer to explain, in writing, the reason for the delay and what additional information is needed.
Get a Second Opinion:
Consider hiring an independent adjuster to assess the damage and value of your claim. This can be a powerful counterpoint to the insurer’s numbers.
Hire Legal Counsel Early:
Many business owners wait too long. Having a lawyer involved early can prevent the insurer from taking advantage of you. If they know you’re represented, they’re more likely to act fairly.
Don’t Wait for a Denial to Act:
If the delay is unreasonable, your attorney can file a lawsuit for breach of contract and bad faith—while the claim is still pending.
Insurance Lawsuit Frequently Asked Questions (FAQs)
Can I sue my insurance company before they deny my claim?
Yes. Mississippi law allows you to file a lawsuit if your insurer is unreasonably delaying the claim process, especially if it affects your business’s operations and financial stability. A delay can be treated as constructive denial.
What qualifies as bad faith in Mississippi?
Bad faith includes any conduct where the insurer knowingly or recklessly denies benefits without a valid reason, delays payment unnecessarily, or treats the insured unfairly. Repeated document requests, low offers, or unjustified investigations are red flags.
How long should an insurance company take to pay a valid claim?
There’s no hard rule in Mississippi law, but insurers are expected to act promptly. If a claim is straightforward, weeks—not months—should be the timeline. Excessive delay may be grounds for legal action.
What kind of damages can I recover in a bad faith lawsuit?
You can recover policy benefits, damages for additional losses caused by the delay (like lost profits), attorney’s fees, and in cases of willful misconduct, punitive damages.
Can I recover business interruption losses if my claim is delayed?
Yes. Business interruption losses are covered under most commercial fire insurance policies, and delays in payment that affect operations can result in additional liability for the insurer.
Will suing my insurer cancel my policy?
No. Mississippi law prohibits retaliation against policyholders who assert their legal rights. Your insurer cannot cancel your coverage simply because you filed a lawsuit.
What if my insurer is blaming me for the fire or loss?
They must have evidence. Blaming the policyholder without proof is a common bad faith tactic. Mississippi law allows you to challenge false accusations and recover additional damages if your insurer acted recklessly or maliciously.
Do I need to hire a lawyer right away?
While you can start the claim process on your own, you should consider hiring a lawyer as soon as delays, low offers, or hostile behavior arise. A lawyer protects your interests and helps preserve evidence for litigation if needed.
Is there a deadline to sue my insurer in Mississippi?
Yes. Most fire insurance lawsuits must be filed within three years under Mississippi’s statute of limitations. Waiting too long could forfeit your claim. An attorney can ensure you act within the correct time frame.
How can Barrett Law, PLLC help my business?
Jonathan Barrett handles insurance delay and bad faith cases for Mississippi businesses. From independent evaluations to aggressive legal action, Barrett Law can recover what your business is owed—and hold insurers accountable for wrongful conduct.
Have You or Your Business Suffered Business Interruption Losses and Damages in Mississippi?
Call Mississippi Business Interruption Insurance Claim Attorney Jonathan Barrett 24/7/365 at (601) 790-1505 for Your FREE Consultation
Barrett Law, PLLC has earned a reputation for standing up to powerful insurance companies on behalf of Mississippi businesses. Whether your claim is being delayed, underpaid, or unfairly denied, our office is prepared to take immediate legal action. We serve clients across the entire state of Mississippi, including:
Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Olive Branch, Tupelo, Meridian, Pearl, Madison, Greenville, Oxford, Clinton, Horn Lake, Brandon, and surrounding areas.
Don’t let delays destroy your business. Take control today with legal guidance you can trust.
Jonathan Barrett Fights for Mississippians – Call 24/7/365 at (601) 790-1505 to Receive Your FREE Consultation
