BrickStreet to Drop West Virginia Government Accounts

The company created by West Virginia to provide workers’ compensation insurance no longer wants to cover state agencies, prompting lawmakers to consider alternative policy options.

The Senate Finance Committee learned of the possible change by BrickStreet Mutual Insurance Co. when members quizzed BrickStreet chief executive Greg Burton. They then endorsed a bill that would allow the state insurance commissioner to help state agencies obtain coverage from other private insurers.

Burton said BrickStreet has lost $30 million over the past three years from claims by state agencies and volunteer fire departments. For every dollar it collected from them in premiums, BrickStreet paid out $1.36. Last year, these policyholders cost $1.57 for every dollar in premiums.

“We cannot handle that kind of program any longer,” Burton told committee members.

But Burton said the bill could prompt BrickStreet to reconsider, citing provisions meant to improve workplace practices.

“A number of the agencies don’t drive home safety and loss prevention-type techniques and return to work programs,” Burton said. “You have some agencies that are doing that, and we saw it was working well for them and their claims have gone way down. You have some agencies that just would not do that.”

Burton said the state Senate was among the worst, costing BrickStreet $1,479 for each premium dollar. He did not have details for the claims behind those losses.

Topics Agencies Virginia West Virginia