How Businesses and Property Owners Can Protect Their Rights After an Unjust Denial
When disaster strikes—whether it’s a fire at your commercial property, storm damage to your business, or a sudden interruption to your operations—you rely on your insurance policy to cover the losses and help you recover. But what happens when your insurer refuses to pay? Worse, what if the denial is based on shaky grounds, excessive delay, or outright misrepresentation? This is where Mississippi’s bad faith insurance laws come into play.
My name is Jonathan Barrett. As a Mississippi fire insurance and business interruption claim lawyer with decades of experience, I’ve seen firsthand how devastating insurance denials can be. At Barrett Law, PLLC, we fight for Mississippi businesses and property owners who were treated unfairly by their insurers.
If your insurance company has denied your claim without valid cause, delayed payment unnecessarily, or failed to fully investigate, you may have a bad faith insurance claim under Mississippi law. This blog will help you understand what bad faith looks like, what your legal rights are, and how to file a lawsuit to pursue the compensation you’re owed.
What Is Bad Faith in Mississippi Insurance Claims?
In Mississippi, insurance companies have a legal obligation to treat policyholders fairly and act in good faith. When they fail to do so, it can give rise to a bad faith insurance lawsuit.
Common Bad Faith Practices Include:
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Unreasonably denying a valid claim
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Failing to properly investigate before denying
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Delaying payment without justification
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Offering substantially less than the claim’s actual value
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Misrepresenting coverage or policy terms
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Accusing the insured of fraud without proof
These tactics aren’t just frustrating—they may be illegal. Mississippi courts have long recognized that insurers cannot place their own financial interests above the rights of policyholders.
Mississippi’s Legal Standard for Bad Faith
Under Mississippi law, an insurer acts in bad faith when it denies a claim without an arguable or legitimate reason, or when it fails to properly investigate a claim before denying it.
This standard was established in cases such as State Farm Fire & Casualty Co. v. Simpson, where the court held that a breach of the duty of good faith can result in extra-contractual damages—beyond the original claim.
If bad faith is proven, the policyholder may recover:
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The full value of the insurance claim
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Interest on delayed payments
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Attorneys’ fees
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Emotional distress damages
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Punitive damages, which can be substantial in some cases
Who Is Affected and Why It Matters
Small Businesses
When a fire, theft, or storm damages your business property, every day without funds hurts your bottom line. If your insurer refuses to pay what’s owed, it could mean lost revenue, unpaid payroll, and permanent closure.
Homeowners
Families rely on insurance to rebuild and move forward. A wrongful denial or lowball offer after a fire or tornado can leave you homeless or drowning in repair bills.
Commercial Property Owners
Landlords and real estate investors often face delays or denials when seeking property damage or business interruption coverage. These delays cost rental income and can strain tenant relationships.
Contractors and Developers
Construction companies facing fire or flood losses during a project are often targeted by insurers looking to avoid paying out high-value claims.
No matter the industry, unjust claim denials cause real harm. That’s why we aggressively pursue bad faith claims throughout Mississippi.
Mississippi Statutes and Case Law
Statutory Authority
Mississippi does not have a single “bad faith” statute. Instead, courts interpret duties under a combination of:
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Miss. Code Ann. § 83-5-28, which allows for attorney’s fees in some insurance disputes
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Common law and court precedent recognizing tort claims for bad faith refusal to pay
Landmark Case Law
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Universal Life Insurance Co. v. Veasley – Allowed recovery for emotional distress
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State Farm v. Campbell – Set limits on punitive damages nationally, but Mississippi courts still award them in egregious bad faith cases
Knowing how to frame your claim based on Mississippi’s legal standards is critical. That’s where Barrett Law comes in.
Filing a Bad Faith Lawsuit in Mississippi
If you believe your insurer acted in bad faith, the following steps can protect your rights:
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Document Everything – Save all claim correspondence, adjuster reports, denial letters, and inspection notes.
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Request a Written Denial – Mississippi insurers must explain why a claim is denied. If they don’t, it’s a red flag.
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Request the Claim File – You may be entitled to access the file the insurer used to evaluate your claim.
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Don’t Settle for Less – If the offer doesn’t cover your loss, don’t sign anything until you’ve spoken to legal counsel.
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Call a Mississippi Insurance Lawyer – At Barrett Law, we will review your policy, evaluate the denial, and—if appropriate—file a lawsuit for breach of contract and bad faith.
Common Tactics Insurers Use to Deny Fire and Business Interruption Claims
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Blaming the Policyholder: Insurers may claim arson or fault without evidence.
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Claiming Lack of Coverage: Even when damage clearly falls within the policy.
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Delaying Investigations: Hoping policyholders give up or settle for less.
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Requesting Endless Documentation: To stall or avoid payment.
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Undervaluing the Loss: Using biased adjusters to lowball the claim.
You have legal tools to fight back when your insurer acts this way. At Barrett Law, we use litigation, negotiation, and if needed—trial—to hold bad faith insurers accountable.
Practical Advice for Mississippi Businesses and Homeowners
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Review Your Policy: Understand what coverage you have and what exclusions apply.
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Get Independent Estimates: Don’t rely solely on the insurer’s numbers.
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Hire Your Own Adjuster: Consider working with a public adjuster for complex or high-value claims.
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Act Quickly: Statutes of limitations apply to both breach of contract and bad faith claims.
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Document Damages: Take photos, keep receipts, and preserve damaged property when possible.
Bad faith doesn’t always look obvious—sometimes it’s subtle or hidden behind confusing language. Let us help you make sense of your situation.
Frequently Asked Questions About Mississippi Business Interruption and Bad Faith Claims
Can my insurance company deny a fire claim if the cause is still unknown?
Not without proper investigation. Mississippi law requires a full and fair inquiry before denial. Premature rejections may constitute bad faith.
What is considered a “legitimate reason” for denial?
A legitimate reason must be supported by policy language and facts from a proper investigation. Disputes over interpretation or misreading of terms often signal bad faith.
Is a delay in payment considered bad faith?
Delays can be signs of bad faith, especially if the insurer fails to communicate, investigate, or explain why payment is held up.
What damages can I recover in a bad faith lawsuit?
You can recover the original claim value, attorney’s fees, interest, and possibly emotional distress or punitive damages.
Can a business file a bad faith claim?
Yes. Both individuals and business entities can pursue damages under Mississippi bad faith law.
How long do I have to file a bad faith lawsuit?
Typically, you must file within three years of the denial or wrongful conduct, under Mississippi’s statute of limitations for contract and tort actions.
What if my insurer says the loss is excluded under my policy?
Exclusions must be clearly stated and narrowly interpreted. If the language is vague or your situation doesn’t clearly fit the exclusion, you may still have a claim.
Is hiring a lawyer necessary if my claim is denied?
Absolutely. Insurance law is complex, and insurers often rely on the fact that most policyholders won’t push back. Legal representation levels the playing field.
What if my business had to shut down due to a fire, but the insurer says my policy doesn’t include interruption coverage?
You should have your policy reviewed by an attorney. Many commercial policies do include some form of business interruption, and denying this coverage may be improper.
Does Barrett Law handle both residential and commercial bad faith cases?
Yes. We represent homeowners, business owners, landlords, and property investors across the state.
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 is ready to take swift legal action when your insurer refuses to honor its obligations. Whether your claim involves fire damage, structural losses, or business interruption, we have the experience and the courtroom strength to help you fight back.
Jonathan Barrett Fights for Mississippians – Call 24/7/365 at (601) 790-1505 to Receive Your FREE Consultation
Barrett Law, PLLC represents businesses and property owners all across Mississippi, including the Mississippi Gulf Coast, Central, Southern, and Northern Mississippi. We serve cities such as Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Olive Branch, Tupelo, Meridian, Pearl, Madison, Greenville, Oxford, Clinton, Horn Lake, and Brandon, MS.
