When a fire tears through your business, the damage is more than just physical. Equipment, machinery, inventory, and crucial infrastructure often sustain catastrophic losses, bringing operations to a halt. Mississippi business owners often assume that their commercial property insurance covers these losses without question. Unfortunately, that’s not always the case.
At Barrett Law, PLLC, we’ve helped countless Mississippi businesses fight back against insurance companies that underpay, delay, or outright deny valid fire damage claims. Attorney Jonathan Barrett has spent decades holding insurers accountable and securing the full compensation our clients are entitled to under Mississippi law.
This article will walk you through how business fire insurance works, what it may cover, what it may not cover, how exclusions can leave you exposed, and what you should do immediately after a fire to preserve your right to recover damages. If your equipment or machinery was damaged or destroyed in a fire, the stakes are high — and knowing your rights under Mississippi law is critical.
What Commercial Fire Insurance Typically Covers in Mississippi
Commercial fire insurance is usually part of a larger business property insurance policy. In most cases, it covers damage caused by fire to:
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Buildings and structures owned by the business
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Furniture, fixtures, computers, and other physical assets
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Specialized machinery and tools
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Inventory, raw materials, and finished goods
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Business interruption losses due to the fire
However, not every policy is the same. The language in your specific contract will dictate exactly what is covered, under what conditions, and what documentation is required to support your claim.
Equipment and Machinery: The Most Overlooked—and Contested—Assets
Some of the most valuable assets in Mississippi commercial fire claims are equipment and machinery. These often include:
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Manufacturing systems
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Computer servers or IT infrastructure
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HVAC or refrigeration units
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Restaurant appliances and kitchen equipment
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Construction or farm machinery
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Specialized tools or custom installations
While these items are often covered, insurance companies frequently contest their value, claim improper maintenance, or argue exclusions that limit recovery. Disputes also arise over whether machinery was “used in the business” or “personal property.”
Insurers may demand detailed proof of ownership, maintenance logs, repair history, invoices, and professional appraisals — all while delaying payment. If the insurer drags their feet or underpays, the business owner is left with devastating downtime and mounting losses.
Common Coverage Exclusions That Hurt Mississippi Business Owners
Some policies contain exclusions that may prevent or reduce payment for equipment or machinery losses. These may include:
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Wear and Tear: Insurers may argue the equipment was old, not properly maintained, or already defective before the fire.
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Electrical Failure: If a fire starts due to an electrical malfunction in equipment, the insurer may invoke an exclusion for internal failure.
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Improper Storage or Use: Insurers sometimes deny claims by alleging that the machinery wasn’t installed or used in compliance with fire codes or policy conditions.
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Business Interruption Gaps: Your business may be covered for physical loss, but not for income loss or extended downtime unless you have specific business interruption coverage.
Understanding the fine print in your policy is critical. Unfortunately, many Mississippi business owners only realize these limitations after it’s too late — unless they have a lawyer experienced in fire insurance litigation.
What Is Fire Loss Litigation?
Fire loss litigation is the legal process of suing an insurance company when they wrongfully deny or underpay a valid fire damage claim. At Barrett Law, PLLC, we represent Mississippi business owners who have been forced to fight for what they’re owed after a disaster.
Fire loss litigation may involve:
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Disputes over the cause of the fire (especially if the insurer claims arson)
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Arguments over the value of damaged machinery or inventory
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Refusal to pay for business interruption losses
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Breach of contract or failure to timely investigate
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Bad faith insurance conduct (discussed more below)
If your insurer fails to act fairly or lawfully, you may not only recover the value of your claim — you may also be entitled to additional damages, including punitive damages under Mississippi law.
Understanding Bad Faith in Fire Insurance Claims
Under Mississippi Code § 83-5-45 and related case law, insurers have a legal obligation to process and pay valid claims in good faith. If they intentionally delay, deny, or underpay a legitimate claim without a valid reason, this may constitute bad faith.
Examples of bad faith include:
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Ignoring submitted documentation
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Failing to investigate promptly
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Deliberately undervaluing machinery or equipment
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Pressuring policyholders to accept low settlements
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Misrepresenting policy terms
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Retaliating when a claim is challenged
Barrett Law has successfully pursued bad faith lawsuits against insurers who use these tactics. These cases can result in significantly higher compensation — sometimes well beyond the original value of the policy claim.
Who Is Affected and Why It Matters
The victims of fire damage aren’t just property owners — they’re job creators, families, and communities. Businesses across Mississippi, from Jackson to Biloxi and from Oxford to Hattiesburg, rely on operational machinery to survive.
When insurers fail to pay what’s owed, the impact is immediate:
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Operations grind to a halt
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Employees are laid off
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Rebuilding is delayed or impossible
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Vendors, customers, and communities suffer
Barrett Law, PLLC understands these real-world consequences. Our goal is not only to resolve your claim — but to hold your insurer accountable, secure the funds you need to rebuild, and protect your business’s future.
Legal Rights and Statutory Protections in Mississippi
Fire insurance claims and bad faith lawsuits in Mississippi are governed by both contract law and specific statutes.
Some relevant statutes and case law include:
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Mississippi Code § 83-5-45 – Regulates unfair or deceptive practices by insurance companies.
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Mississippi’s Bad Faith Doctrine – Under common law, insurers owe a duty of good faith and fair dealing.
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Mississippi Code § 15-1-49 – Imposes a three-year statute of limitations for filing breach of contract or bad faith insurance lawsuits.
If your claim is wrongfully denied or delayed, the clock starts ticking. Delaying legal action may cost you the right to pursue your case altogether.
Practical Steps for Business Owners After a Fire
If your business has suffered fire damage, especially to critical equipment or machinery, take these steps immediately:
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Document Everything – Take photos and videos of all damage, including serial numbers on equipment.
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Request a Certified Copy of Your Policy – Don’t rely on memory or assumptions.
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File a Claim Promptly – Include detailed inventory, estimated values, and repair quotes.
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Cooperate, But Stay Cautious – Provide requested documents, but don’t let the insurer twist your words.
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Don’t Sign Anything Without Legal Review – Especially if the settlement seems low or includes a release.
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Consult a Lawyer Early – Even before the insurer denies your claim, a lawyer can ensure you’re protected.
At Barrett Law, we guide clients through each of these steps and handle all communication with the insurer.
Frequently Asked Questions
What should I do if my insurance company is delaying payment?
Delays are a common tactic used to wear down policyholders. If your insurer fails to respond or investigate your claim within a reasonable timeframe, you may have grounds for a bad faith lawsuit. Mississippi law requires insurers to handle claims fairly and promptly.
Does my business interruption insurance cover downtime after the fire?
It depends on your policy. Some policies cover lost income during repair and recovery, but others require specific endorsements. Review your policy language or consult an attorney to confirm.
What if the insurer says my equipment wasn’t properly maintained?
This is a common excuse used to deny claims. Your insurer must prove that maintenance issues — not the fire — caused the damage. We can counter these arguments with expert testimony and documentation.
Can I sue for more than just the value of the equipment?
Yes. If the insurance company acted in bad faith, you may be entitled to extra-contractual damages, including emotional distress, attorney’s fees, and punitive damages.
What if the insurance company accuses me of arson or fraud?
Insurers often use these accusations to avoid paying. These are serious claims and require immediate legal representation. We can help you challenge false accusations and defend your reputation.
Is fire damage to leased equipment covered?
Coverage depends on whether your policy includes leased property and whether you are contractually responsible for the loss. We help clarify and enforce these provisions.
Can I still file a claim if I didn’t report the fire immediately?
Insurers may use delays in reporting as a reason to deny claims. However, this doesn’t always hold up legally. Contact an attorney to assess whether the delay affects your rights.
My insurer offered a partial settlement — should I accept it?
Often, partial offers are lowball attempts to limit liability. Accepting without legal review may waive your right to full compensation. Always consult an attorney first.
How long do I have to sue an insurance company in Mississippi?
Generally, you have three years to file a lawsuit for breach of contract or bad faith. However, early legal action is recommended to preserve evidence and protect your rights.
Will hiring a lawyer make my insurance company act faster?
Yes. Insurers tend to take claims more seriously when a lawyer is involved. We ensure they follow the law, meet deadlines, and honor your policy terms.
Have You or Your Business Suffered Fire Losses and Damages in Mississippi?
Call Mississippi fire insurance claim Attorney Jonathan Barrett 24/7/365 at (601) 790-1505 for Your FREE Consultation
Barrett Law, PLLC has helped Mississippi business owners across every corner of the state recover full compensation after catastrophic fire losses. Whether your insurer denied your claim, delayed payment, or refused to cover your equipment or machinery, we’re ready to help you fight back.
We represent businesses throughout the Mississippi Gulf Coast, Central, Southern, and Northern Mississippi — including Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Olive Branch, Tupelo, Meridian, Pearl, Madison, Greenville, Oxford, Clinton, Horn Lake, and Brandon.
Jonathan Barrett Fights for Mississippians – Call 24/7/365 at (601) 790-1505 to Receive Your FREE Consultation
If you believe your insurer is acting in bad faith, or if you’re unsure whether your business insurance covers your fire losses, it costs nothing to talk to us. We’ll review your policy, explain your rights, and fight to recover every dollar you’re owed.
