Fires strike fast—and when they affect a business, the consequences can be catastrophic. A single fire can shut down operations, destroy property, disrupt contracts, drive away customers, and threaten the future of everything you’ve built. If your commercial property suffers fire damage, your first question is often: “How do I keep my business afloat while repairs are underway?”
For Mississippi business owners, the answer often lies in the business interruption coverage included in a commercial fire insurance policy. But unfortunately, many business owners find themselves fighting to recover what they are owed. Insurance companies may delay, underpay, or outright deny claims—leaving you to carry the financial burden alone.
At Barrett Law, PLLC, Jonathan Barrett, a dedicated Mississippi fire insurance claim attorney, represents business owners across the state who’ve been financially harmed after a fire. If your insurer refuses to fairly compensate you for business interruption losses, you may have legal options. This article explains what business interruption insurance covers, your rights under Mississippi law, and how Barrett Law can help.
Understanding Business Interruption Coverage
Business interruption insurance, sometimes referred to as business income coverage, is designed to compensate you for the lost income and operating expenses you incur when a covered event—like a fire—forces your business to shut down or significantly scale back operations.
What Does It Cover?
Depending on the terms of your policy, business interruption insurance may cover:
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Lost net income based on historical financial performance
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Ongoing expenses like rent, utilities, payroll, and taxes
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Temporary relocation costs
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Loan payments
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Extra expenses incurred to reduce the length of downtime
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Losses due to supply chain disruptions or customer cancellations
This coverage is not automatic in every policy—it must be included in your commercial property insurance or added as an endorsement.
How Fires Trigger Business Interruption Claims
To qualify for business interruption benefits in Mississippi:
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Your policy must be in effect and active on the date of the fire
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The fire must cause direct physical damage to your business property
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The fire damage must result in a suspension or slowdown of operations
Examples of covered fire-related events include:
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Flames damaging the interior or structure of a retail storefront
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Smoke or water damage forcing a restaurant to close temporarily
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A warehouse fire destroying critical inventory and halting shipments
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Closure due to fire code violations during repairs
The impact of fire damage doesn’t end when the flames are extinguished. Business interruption losses can continue for weeks or months while you rebuild, replace equipment, and regain customer trust.
Who Is Affected and Why It Matters
Fires affect a wide range of Mississippi businesses, including:
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Small businesses with limited cash reserves
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Retailers, restaurants, salons, and service providers with physical locations
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Manufacturers and warehouses with valuable inventory and equipment
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Medical and dental offices that rely on specialized infrastructure
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Contractors and tradespeople with tools and vehicles stored onsite
When insurers underpay business interruption claims, it can force layoffs, cause missed loan payments, lead to contract breaches, and even push companies toward bankruptcy. That’s why it’s critical to act quickly—and to work with a law firm that understands fire-related commercial insurance claims.
Legal Obligations Under Mississippi and Federal Law
Mississippi Unfair Claims Practices Act (Miss. Code Ann. § 83-5-45)
Under Mississippi law, insurance companies must:
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Conduct reasonable investigations
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Communicate promptly with policyholders
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Provide clear explanations for claim denials
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Settle claims fairly and without unnecessary delay
A violation of these duties may result in a bad faith insurance lawsuit.
Contract Law Principles
Commercial property policies are binding contracts. When an insurer fails to pay covered business interruption losses, they may be held liable for breach of contract—and required to pay the full value of your loss, plus interest and legal fees.
Common Disputes in Business Interruption Claims
1. Underestimating Lost Income
Insurers may argue your projected income is exaggerated, especially if your business was seasonal or newly established. Barrett Law can work with financial experts to validate your losses.
2. Delays in Processing or Payment
Some insurers stall payments, forcing business owners to cover payroll or rent out of pocket. Mississippi law prohibits unreasonable delays.
3. Disagreements Over Length of Restoration Period
Policies typically pay until repairs are complete or the business resumes normal operations. Insurers often cut off payments early—even if you’re still incurring losses.
4. Denial Based on Policy Exclusions
Insurers may point to exclusions (e.g., faulty wiring, arson, or negligence) to deny your entire claim. These exclusions are often misapplied or ambiguous.
Steps to Take After a Fire Impacts Your Business
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Review your insurance policy
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Look for business income coverage
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Note the waiting period before benefits begin
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Identify policy exclusions or special limitations
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Document all damage and disruption
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Take photos and videos of physical damage
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Retain repair invoices, leases, and utility bills
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Gather profit and loss statements and tax returns
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Track your expenses
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Keep records of relocation costs, temporary equipment rentals, and increased operational expenses
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File your claim promptly
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Delays can impact your eligibility or payout
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Provide written notice and comply with documentation requests
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Consult a Mississippi fire insurance attorney
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If your insurer denies, delays, or undervalues your claim, legal action may be necessary
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Frequently Asked Questions
Does my commercial policy automatically include business interruption coverage?
Not always. Some policies include it as standard, while others require you to purchase it as an add-on. Always confirm by reviewing your policy.
How is my lost income calculated after a fire?
Lost income is typically based on your business’s historical earnings, adjusted for the restoration period. This may involve reviewing financial records, tax filings, and market conditions.
What is the “restoration period” under business interruption coverage?
This is the time needed to repair, rebuild, and resume normal business operations. It often starts shortly after the fire and continues until your business is operational again.
Can I get compensation for extra expenses, like renting temporary space?
Yes. Many policies cover “extra expense coverage,” which includes costs like temporary relocation, equipment rental, and expedited shipping.
What if my claim is delayed or denied?
You have the right to challenge a denial or file a lawsuit for breach of contract or bad faith. Barrett Law, PLLC can guide you through that process.
Can I file a claim if the fire occurred in an adjacent building that affected my business?
Possibly. If your business was forced to close due to fire damage in a neighboring property, some policies provide civil authority coverage, which may apply.
Do I need an attorney if I’ve already hired a public adjuster?
Yes. A public adjuster can help estimate losses, but only an attorney can enforce your legal rights, file a lawsuit, or recover damages for bad faith.
Is there a deadline to file a business interruption claim in Mississippi?
Most policies require prompt notice, and the statute of limitations for filing a lawsuit is typically three years, but this can vary. Early legal guidance is critical.
Will my coverage extend until my business is back to full profitability?
No. Most policies cover until the property is repaired and operations resume—not necessarily until profits are restored to pre-fire levels.
Can I recover punitive damages if the insurance company acts in bad faith?
Yes. Mississippi courts may award punitive damages if the insurer acted intentionally or recklessly in handling your claim.
Harmed in a Fire in Mississippi? Call Mississippi Fire Insurance Claim Attorney Jonathan Barrett 24/7/365 at (601) 790-1505 for Your FREE Consultation
If your business was interrupted by a fire and your insurance company is refusing to pay—or offering far less than you need—you do not have to accept it. At Barrett Law, PLLC, we help Mississippi business owners recover every dollar they’re owed under their policies.
From Jackson to Gulfport, Oxford, Biloxi, and every county in Mississippi, we fight for those who’ve suffered losses after a fire. We handle everything from policy review and negotiations to litigation against insurers who delay, underpay, or deny valid claims.
📞 Call (601) 790-1505 now for a FREE consultation—available 24/7/365. Let us help you rebuild your business and protect your financial future.
