Mississippi businesses are no strangers to hurricanes. From the Mississippi Gulf Coast to Central and Northern counties, storms leave behind more than just structural destruction—they shut down operations, scare away customers, and derail cash flow. While many business owners assume their insurance policies will cover lost income, the reality is often far more complicated.
At Barrett Law, PLLC, we’ve helped Mississippi businesses recover millions in commercial hurricane damage claims, including business interruption coverage that insurers tried to deny, delay, or undervalue. I’m Jonathan Barrett, and I’ve spent decades holding insurance companies accountable across Mississippi when they fail to honor their policies after devastating storms.
When your doors close due to hurricane damage, your business shouldn’t have to suffer for an insurer’s bad faith. Keep reading to understand how business interruption insurance works, who’s covered, how to make a strong claim—and what to do when your insurer refuses to pay.
What Is Business Interruption Insurance and Why It Matters After a Hurricane
Business interruption insurance (also called business income coverage) is designed to replace income lost when your business is forced to suspend operations due to a covered event—like a hurricane. It typically covers:
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Lost net income based on historical earnings
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Ongoing operating expenses (like rent, payroll, and loan payments)
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Temporary relocation costs
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Extra expenses to avoid or minimize shutdown
For example, a seafood processing facility in Biloxi hit by Hurricane Zeta might be unable to operate for three months while repairing flood and wind damage. Business interruption insurance should step in to replace the revenue the business would have earned during that period.
But insurers often dispute what should be a straightforward claim. They may argue:
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The damage wasn’t caused by a covered event
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There was no actual suspension of operations
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The losses were exaggerated or poorly documented
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The policy has an exclusion (flood, windstorm, utility interruption, etc.)
That’s where Barrett Law, PLLC can step in to investigate, litigate, and recover the full value of your claim.
Who Is Affected and How Barrett Law Helps
Business interruption can affect nearly every type of commercial enterprise in Mississippi following a hurricane, including:
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Retailers: Inventory damage, power loss, or building repairs force stores to shut down.
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Restaurants: Food spoilage, water damage, and utility outages lead to weeks of closures.
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Hotels and Inns: Guest cancellations and building damage cripple occupancy rates.
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Medical Clinics: Water intrusion, power outages, and uninhabitable buildings suspend operations.
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Manufacturers: Wind or flood damage to equipment and materials halts production lines.
Unfortunately, many business owners assume their insurers will “do the right thing.” But when thousands of claims hit after a hurricane, insurance carriers often look for ways to minimize payouts or deny claims altogether.
Barrett Law works directly with business owners to:
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Analyze policy language and exclusions
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Document and calculate lost profits
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Challenge bad faith denial or delay
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File lawsuits when insurers refuse to pay
Whether your claim involves wind damage, flood exclusion disputes, or delayed loss valuation, we know how to hold insurers accountable.
Relevant Mississippi and Federal Legal Obligations
Several legal principles and statutes protect Mississippi business owners from unfair treatment by insurance companies.
1. Mississippi Insurance Bad Faith Law
Insurance companies have a duty to act in good faith and deal fairly with policyholders. If they unreasonably delay, deny, or underpay a legitimate business interruption claim, they may be liable for bad faith under Mississippi law (see State Farm Fire & Casualty Co. v. Simpson, 477 So. 2d 242).
2. Mississippi Code § 83-5-28
This law prohibits unfair claim settlement practices, including failing to affirm or deny coverage promptly and not attempting in good faith to settle claims.
3. Federal FEMA Regulations
If your business carries National Flood Insurance Program (NFIP) coverage, you must comply with FEMA rules when filing flood-related business interruption claims.
Barrett Law understands how to interpret and apply these legal standards in commercial hurricane damage claims.
Actionable Steps if Your Business Suffers Hurricane-Related Interruption
If your business has experienced lost income due to hurricane damage, here’s how to protect your rights and preserve your claim:
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Document Everything
Take dated photos of damage. Keep records of all communications with insurers, contractors, and vendors. Save financial records and profit-and-loss statements. -
Understand Your Policy
Review the business interruption section. What is the coverage limit? What are the waiting periods or exclusions? Don’t rely on the adjuster’s interpretation alone. -
Track Lost Income and Expenses
Keep detailed records of canceled contracts, lost sales, and ongoing costs like rent and payroll during closure. -
Request a Copy of the Adjuster’s Report
If your claim is undervalued, request the damage assessment in writing and compare it with your independent contractor’s estimate. -
Call Barrett Law, PLLC
If you suspect unfair treatment or delay, we can evaluate your policy, audit the insurance company’s decision, and fight for the compensation you’re owed.
Mississippi Business Interruption Lawsuit Frequently Asked Questions
What is covered under business interruption insurance in Mississippi?
Business interruption coverage typically includes lost net profits, operating expenses, relocation costs, and some payroll costs incurred during the suspension of business operations due to physical damage from a covered event like a hurricane.
Is flood damage covered under business interruption policies?
Standard policies often exclude flood-related business interruption unless you have additional flood insurance, such as NFIP coverage. Barrett Law can assess whether your loss was caused by wind or flood and how that distinction affects your claim.
How do I calculate my business income loss after a hurricane?
Income loss is calculated by comparing past financial performance with actual earnings during the interruption. Detailed documentation—like monthly income statements, tax records, and canceled customer contracts—helps build a strong claim.
How long must my business be closed before coverage applies?
Most policies have a 24- to 72-hour waiting period before coverage kicks in. If your shutdown lasts longer than the waiting period, your business interruption claim may be valid.
Can I sue my insurance company for denying my business interruption claim?
Yes. If your insurer acts in bad faith by denying a valid claim, delaying payment, or offering an unreasonably low settlement, you may be entitled to file a lawsuit to recover damages.
Does business interruption insurance cover partial shutdowns?
Some policies allow for coverage even when your business is partially operating but cannot function at full capacity. Barrett Law can review your policy and advise on this issue.
Can utility outages from a hurricane trigger business interruption claims?
Yes, but only if your policy includes service interruption coverage. If power or water service was disrupted due to physical damage to nearby infrastructure, you may qualify.
What if my insurer says my losses are not related to the hurricane?
Disputes often arise when insurers claim pre-existing conditions or deny a causal link between the storm and damage. We help prove the connection through evidence and expert assessments.
How soon should I call an attorney after a denial or delay?
The sooner you contact an attorney, the better your chances of preserving evidence, avoiding procedural mistakes, and protecting your legal rights.
What does Barrett Law charge to handle business interruption disputes?
We handle many hurricane-related insurance claims on a contingency fee basis—meaning you pay nothing unless we recover money for you.
Has Your Business Suffered Hurricane Damage in Mississippi? Call Mississippi Commercial Hurricane Damage Attorney Jonathan Barrett 24/7/365 at (601) 790-1505 for Your FREE Consultation
If your business has been affected by a hurricane in Mississippi—and your insurance company is delaying, denying, or underpaying your claim—it’s time to act. You worked hard to build your business. You deserve full compensation for your lost income and property damage.
At Barrett Law, PLLC, we represent businesses across the state, including in the Mississippi Gulf Coast, Jackson, Hattiesburg, Oxford, Tupelo, the Pine Belt, and throughout Central, Southern, and Northern Mississippi.
Call us today at (601) 790-1505 for your FREE consultation. We’re available 24/7/365 to protect your rights and fight for the recovery your business deserves.
