By Phil Kabler
The Charleston Gazette
CHARLESTON, W.Va. — Volunteer fire departments around the state will be able to receive broadform workers’ compensation insurance coverage through the state Board of Risk and Insurance Management, Gov. Joe Manchin announced Tuesday.
BrickStreet Mutual, which provides workers’ compensation coverage for the state’s more than 400 volunteer fire departments, announced it was discontinuing broadform coverage for those policies, effective Sept. 1.
Broadform coverage protects directors and officers of VFDs from any personal liability lawsuits if firefighters under their supervision are injured or killed in the line of duty.
Manchin’s office indicated that 281 of the VFDs have the broadform coverage as part of their workers’ compensation coverage through BrickStreet.
In a news release, Manchin said that BRIM, which provides insurance coverage for state agencies and for participating cities, counties and school boards, would offer broadform coverage to the VFDs through June 30, 2011.
“It’s a temporary measure while the governor tries to figure out what to do with the entire workers’ compensation issue,” Robert Fisher, deputy director of BRIM, said Tuesday.
In June, Manchin announced that BrickStreet had agreed to withdraw about $400,000 in total premium increases for VFDs statewide, which had been approved by the state Insurance Commission and had been set to go into effect on July 1.
However, under the state law to privatize workers’ compensation insurance, BrickStreet is not obligated to offer coverage to VFDs after June 30, 2011. At the time, BrickStreet President and CEO Greg Burton said no insurance carriers in the state are likely to write coverage for VFDs, given BrickStreet’s experience of a 7-to-1 loss ratio on that coverage.
Earlier this month, Insurance Commissioner Jane Cline sent a memo to VFDs advising that they do not need broadform coverage, because directors and officers have immunity from personal liability under the state’s Government Tort Claims Act.
Under that law, government officials can be held personally liable in workers’ compensation lawsuits only if there is proof that the employer had a “deliberate intent” to knowingly subject an employee to unsafe working conditions.
Fisher noted that having immunity doesn’t mean that officials, including VFD directors and officers, can’t be sued.
“Having immunity doesn’t mean you won’t incur some expense responding to lawsuits, and need additional coverage,” he said.
Manchin appointed a task force in June, headed by Revenue Secretary Virgil Helton, to come up with solutions to the VFDs’ workers’ compensation coverage issues.
“This BRIM coverage allows the task force time to continue its diligent research of the issues at play and provide a well-thought-out resolution without the strain of knowing our everyday heroes are operating while uninsured,” Manchin said in his statement.
Kanawha County Commission President Kent Carper said he was pleased that Manchin had extended BRIM coverage to the VFDs, but said the real issue is for the Legislature to come up with a method to adequately fund rural fire services in the state.
“The question is, will the Legislature come up with appropriate funding?” he said.
Copyright 2010 Charleston Newspapers