When a fire strikes your business, the destruction goes far beyond the walls of the building. In Mississippi, many small business owners face devastating financial losses—not just from the cost of property damage, but from the sudden interruption of operations. The inability to serve customers, generate revenue, or resume operations quickly can turn a fire into a long-term financial crisis.
Business interruption claims are meant to fill that gap. Yet, far too often, insurance companies delay, underpay, or outright deny these claims, leaving owners unsure of how to keep their businesses alive.
At Barrett Law, PLLC, we represent Mississippi business owners whose fire insurance claims have been unfairly handled. With decades of experience, attorney Jonathan Barrett is known for aggressively pursuing the full compensation our clients are owed—whether it’s building damage, lost inventory, or lost income. If your business has suffered income loss due to fire, you deserve clarity, answers, and powerful legal advocacy.
If you’re struggling to recover lost business income after a fire, call (601) 790-1505 for a free consultation. We are available 24/7/365.
Understanding Business Income Coverage After a Fire
Most commercial property insurance policies include Business Interruption Coverage, also referred to as Business Income Insurance. This coverage is designed to replace the income your business loses when it’s forced to shut down temporarily due to a covered peril—such as a fire.
What Business Interruption Typically Covers:
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Net income your business would have earned during the shutdown.
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Ongoing fixed expenses like rent, utilities, payroll, and taxes.
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Costs of temporary relocation (e.g., leasing another building).
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Extra expenses incurred to minimize the business interruption.
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Loss of commercial tenants, if you’re a landlord and your property is uninhabitable.
This coverage applies only if the loss is directly caused by a covered peril—in this case, fire—and continues for a limited “period of restoration,” which is defined in the policy.
Who Is Affected and Why
Small Businesses Across Mississippi
Fires can strike any type of business—restaurants, retail stores, apartment complexes, offices, or manufacturing facilities. When a business cannot operate, it loses sales, customers, employees, and market share.
Commercial Property Owners
If your building was leased to tenants, fire damage could result in lost rent and claims from renters whose businesses were interrupted.
Franchise Operators or Chains
Fires at franchise locations often lead to brand-wide consequences. The cost of compliance, inspections, and re-opening delays can lead to significant losses—many of which insurers may try to deny.
Barrett Law, PLLC helps clients recover losses from the ground up, including physical damage, tenant losses, and income disruption.
Legal Challenges That Arise in Business Interruption Claims
Insurance companies often make business income claims difficult. Common tactics include:
Lowball Calculations
Insurers may undervalue your income by misinterpreting financial records, denying future projected growth, or ignoring seasonal trends.
Delays in Processing
Business owners often wait months—sometimes over a year—while insurers “investigate.” Meanwhile, bills pile up, employees are let go, and customers disappear.
Disputes Over Restoration Period
The policy’s “restoration period” defines how long the business interruption claim lasts. Insurers may try to cut this short, even if repairs aren’t complete.
Exclusions and Technicalities
Some insurers cite vague exclusions, argue that extra expenses were not “necessary,” or deny that the shutdown was caused by the fire itself.
At Barrett Law, we’ve seen these tactics time and time again. We know how to challenge them and build the documentation needed to force a proper payout.
Key Legal Duties and Policyholder Obligations
Under Mississippi law, and your policy, you have certain duties:
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Promptly notify your insurer of the loss
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Prevent further damage where possible (e.g., board up property, water mitigation)
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Keep detailed records of lost income, expenses, and attempts to mitigate the damage
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Cooperate with the insurer’s investigation, but you do not have to accept low estimates or misrepresentations
Your insurance company also has obligations:
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To act in good faith
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To conduct a reasonable and timely investigation
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To pay valid claims promptly
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To communicate decisions in writing and explain denials
If they fail to meet these duties, they may be liable for bad faith under Mississippi law.
Relevant Mississippi and Federal Laws
Mississippi Unfair Claims Practices (Miss. Code Ann. § 83-5-301 et seq.)
This law prohibits insurance companies from:
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Misrepresenting policy terms
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Failing to acknowledge and act on claims promptly
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Refusing to pay claims without conducting a reasonable investigation
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Offering substantially less than what is owed
Breach of Contract and Bad Faith Lawsuits
In addition to contract damages (the unpaid benefits), Mississippi law allows claimants to seek:
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Punitive damages for willful misconduct
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Attorney’s fees and litigation costs
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Consequential damages, including damage to credit, reputation, and lost opportunities
Practical Steps to Take If Your Business Suffers Fire Damage
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File the Claim Promptly – Delay can be used against you.
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Document Everything – Photos, videos, ledgers, invoices, and receipts are key.
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Track Lost Revenue – Gather past tax returns, P&L statements, payroll reports, and customer correspondence.
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Get Independent Estimates – Don’t rely solely on the insurer’s repair contractors.
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Keep a Record of All Communications – Emails, letters, phone logs, and adjuster responses.
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Talk to an Attorney – Especially if your claim is being delayed, denied, or underpaid.
Frequently Asked Questions
What is the “period of restoration” in a business income claim?
The “period of restoration” is the time your insurance company will pay for lost income, starting from the date of the fire and ending when your property should reasonably be repaired or replaced. Disputes often arise over how long this period should last.
Can I claim lost future income?
Yes. Many businesses can claim anticipated revenue based on past performance, trends, and seasonal sales. However, insurers often push back hard on these estimates.
What if the insurance company says my business wasn’t profitable before the fire?
They may try to deny your claim based on low net profits. A skilled attorney and financial expert can show lost potential, retained earnings, and other indicators of income value.
What if I had to move my business temporarily?
Your policy may cover “extra expense” coverage—costs to move, lease another property, or continue operations offsite.
Can I file a lawsuit if my claim is delayed or denied?
Absolutely. If the insurer unreasonably delays, undervalues, or denies your business interruption claim, you can file a breach of contract and bad faith lawsuit.
Can I reopen a claim if I accepted a small payment under pressure?
Depending on the situation, you may be able to challenge a settlement made under duress, misinformation, or bad faith. It’s important to act quickly.
Does business income coverage include employee wages?
In many cases, yes. Business income coverage is meant to help maintain payroll during the period of restoration—check your policy terms.
How long do I have to file a lawsuit in Mississippi?
Generally, you have three years from the date of loss to bring a fire insurance lawsuit, but some policies have shorter contractual deadlines.
What happens if my business closes permanently due to the fire?
You may still be entitled to recover lost income, expenses, and damages for your total loss. The insurer cannot deny your claim simply because the damage was too extensive.
Should I hire a lawyer or a public adjuster?
In many cases, both work well together. A public adjuster documents the claim. A lawyer enforces it. If your insurer is stalling, underpaying, or denying coverage—call an attorney.
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 you’ve suffered lost business income after a fire, your insurance policy should protect you. When it doesn’t, we will. At Barrett Law, PLLC, we represent Mississippi fire loss victims—homeowners and business owners alike—and hold insurers accountable when they act unfairly or in bad faith.
We serve clients across Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Oxford, Tupelo, Meridian, Pearl, Madison, Greenville, Clinton, Horn Lake, Brandon, and every county in the state.
📞 Call (601) 790-1505 today for your FREE consultation—available 24/7/365.
