West Virginia’s BrickStreet Mutual Insurance Co. is increasing the premiums it charges volunteer fire departments for workers' compensation insurance, leading to an angry reaction at financially struggling departments across the state.
According to The Daily Mail, overseeing workers' comp for volunteer firefighters has been a losing proposition for BrickStreet and it will continue so despite the premium increase.
Company President and CEO Greg Burton claimed that for every dollar it has been taking in in premiums, it has been paying out more than $6 in claims and expenses.
BrickStreet has been billing the volunteer fire departments premiums focused on the number of hours worked multiplied by the minimum wage, according to Burton. But BrickStreet has been paying benefits centered on a volunteer's regular job. That translates to someone who makes $60,000 as an accountant and gets hurt as a volunteer firefighter getting benefits based on the wages made as an accountant. (workersxzcompxzkit)
According to Burton, BrickStreet takes in a total of approximately $500,000 a year in premiums from all of the VFDs but has been recording losses of greater than $3 million a year.
WC Calculator: http://www.reduceyourworkerscomp.com/calculator.php
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