HD55 - Insurance Coverage for Volunteer Firefighters and Rescue Squad Members

  • Published: 2001
  • Author: State Corporation Commission and Bureau of Insurance
  • Enabling Authority: Letter Request from House Committee on Rules

Executive Summary:
In the 2000 Session of the Virginia General Assembly, the House Committee on Rules considered a resolution (HJR 193) to study insurance coverage for volunteer firefighters. This resolution was not reported; however, the Speaker of the House requested, by letter, that the State Corporation Commission (Commission) consider performing such a study. Upon receipt, the Commission agreed to perform the study and added volunteer rescue squads to the scope of the study.

The purpose of the proposed study was to evaluate: (i) the extent to which volunteer firefighters and volunteer rescue squads are covered by workers' compensation insurance and other types of insurance; (ii) whether the provision of insurance coverage for these volunteers is affecting the level of participation in volunteer fire departments and rescue squads; and (iii) whether insurance coverages provided for the volunteers should extend beyond those provided under current workers' compensation laws.

In order to meet the objectives of this study, it was necessary to survey Virginia volunteer fire departments (VFDs), volunteer rescue squads (VRSs), and municipalities. According to the survey results, 62.0% of responding VFD members and 71.4% of responding VRS members are covered by workers' compensation insurance. Also, 91.3% of responding VRS members and 92.6% of responding VFP members are covered by workers' compensation, health, or disability insurance through their respective departments.

Volunteer fire departments and volunteer rescue squads experience volunteer departure rates ("turnover rates") of 11.0% and 15.8% respectively. These turnover rates do not vary significantly for the following groups: (i) departments with workers' compensation insurance provided by the municipalities, (ii) departments obtaining workers' compensation insurance independently, and (iii) departments not carrying workers' compensation insurance. In fact, according to the VFD and VRS survey results, only 10% of the volunteer fire departments' exiting members and 5% of the volunteer rescue squads' exiting members leave their respective departments due to a perceived lack or inadequacy of workers' compensation insurance.

Virginia's wage replacement benefits for volunteer firefighters and rescue squad members were compared to those of other states. Currently, Virginia sets the weekly compensation amount for wage replacement for volunteer firefighters and rescue squad members at $151.50, for a maximum of 500 weeks. Of the 41 other states reviewed, 39 states exceed this level of wage replacement benefits, one state has similar wage replacement benefits, and one state provides lower wage replacement benefits.

The information gathered in the course of this study suggests that the majority of VFDs and VRSs in Virginia are providing some form of insurance protection to their volunteer members. It also appears that the level of participation in VFDs and VRSs does not vary significantly according to whether or not workers' compensation insurance is made available. However, it appears that Virginia's wage replacement benefits for volunteer firefighters and rescue squad members fall below those provided in most other states.