Can You Be Sued If Your Business Has No Insurance After a Fire or Flood?

A fire or flood can be devastating for any Florida business. But the financial aftermath can become even more stressful when another party—like a neighboring tenant, property owner, or insurance company—claims you were responsible for the damages and demands compensation. This is where subrogation claims come into play, and they often catch uninsured business owners off guard.

At Morey Law Firm, P.A., we help Florida businesses respond to these complex legal threats. Our firm is based in Orlando, but we defend clients all across the state—from commercial tenants in Miami to contractors in Jacksonville to shop owners in Pensacola. If you’re being sued and don’t have insurance coverage, you’re not alone—and you still have legal options.

What Is Subrogation and How Does It Affect Uninsured Businesses?

In plain terms, subrogation is when an insurance company pays a claim to its policyholder and then tries to recover that money from someone they believe caused the damage. For example, if your neighboring business has flood insurance and you allegedly left a pipe running that led to water damage, their insurer might sue you to recover the payout.

Normally, if you have commercial insurance, your provider handles the defense. But without insurance, you become the direct target of the lawsuit—and that can put your business and personal assets at risk.

We’ve defended many clients in this exact situation. For a deeper look at how these cases unfold, check out our page on Florida subrogation defense attorneys.

When Fire or Flood Triggers a Subrogation Claim

Subrogation lawsuits after property disasters usually stem from accusations of negligence. The insurance company might claim you:

• Failed to maintain equipment or appliances
• Left water running, causing flooding
• Didn’t follow fire safety codes
• Operated hazardous machinery
• Hired unqualified vendors or contractors

Even if the fire or flood was accidental, you can still be sued if they believe you “should have known” or acted carelessly.

In many cases we see, businesses don’t even realize they’re being investigated until they receive a demand letter or lawsuit. If this sounds familiar, check out our guide on what to do when you receive a lawyer’s letter after an injury claim.

You Don’t Have Insurance—Now What?

The moment you receive a demand or lawsuit, it’s important to act fast. Florida law requires timely responses, and failing to reply could result in a default judgment—meaning the court automatically rules against you.

Here’s what uninsured business owners should do:

1. Don’t Ignore the Lawsuit

Even if you can’t afford to pay the claimed amount, ignoring the case will only make things worse. A judgment can lead to garnishment, liens, or even seizure of certain assets. Our attorneys often defend clients who believe they have no defense—until we dig into the facts and uncover issues with liability or evidence.

2. Evaluate the Subrogation Claim

Is there proof you caused the damage? Are they making assumptions? Are they trying to stretch the limits of negligence? We’ll carefully examine their arguments and look for flaws.

Learn more about how we do this on our page about how our Florida subrogation defense attorneys can help you.

3. Explore Pre-Suit Negotiation

Many fire and flood subrogation claims start with a demand letter before a formal lawsuit is filed. This “pre-suit” stage is a critical opportunity to resolve the matter quietly and affordably. Our team focuses on helping Florida businesses avoid public litigation whenever possible.

Common Defenses in Florida Subrogation Claims

Just because you didn’t have insurance doesn’t mean you’re liable. There are several legitimate legal defenses we often use in these cases:

• No Duty Owed: You weren’t responsible for the system or area where the damage occurred.
• Third-Party Negligence: Another vendor or tenant caused the issue.
• Speculative Damages: They’re demanding more than what was actually lost.
• Comparative Fault: The plaintiff also shares responsibility for the damage.

Each case is unique, and the strength of your defense depends on the evidence, property records, contracts, and more. For instance, if you lease your business space, the lease terms may shift liability back to the landlord.

In fire-related claims, we also look at compliance with building codes, electrical inspections, and whether proper preventative measures were taken. Many subrogation claims fall apart when we uncover that the property had its own unsafe conditions or deferred maintenance.

Can They Come After You Personally?

If your business is structured as a sole proprietorship or a general partnership, your personal assets could be at risk. Even if you operate through an LLC or corporation, plaintiffs may try to “pierce the corporate veil” if they believe you acted recklessly or mixed personal and business finances.

This is why it’s critical to have a defense lawyer who understands both business and personal liability risks. For more insight into how civil judgments affect individuals, see our blog on what can be taken away after a car accident judgment. The risks are similar in fire and flood-related subrogation cases.

Florida Statutes and Deadlines

In most Florida subrogation cases, the suing insurance company has up to 4 years to file a claim based on negligence under Florida Statute § 95.11(3). However, there may be shorter timeframes in certain contractual situations or if notices aren’t responded to.

If you’ve been served with a lawsuit, you typically have just 20 days to file a formal answer. Don’t wait—missing deadlines can lead to an automatic loss.

We Defend Florida Businesses—Even Without Insurance

At Morey Law Firm, P.A., we understand how frightening it can be to face legal action without the safety net of insurance. Whether it’s a water leak that spread to neighboring units or an unexpected electrical fire, we’re here to help you understand your rights and build a defense that protects your future.

Don’t Wait—Protect Yourself and Your Business Today

If you’ve received a demand letter or been sued after a fire or flood—and you don’t have insurance coverage—call us. We help clients across Florida, from Tampa to Tallahassee, defend against aggressive subrogation claims with clear, strategic legal guidance.

Contact us now through our contact page to schedule a confidential consultation. No insurance? No problem. We’ll help you fight back.