CHARLESTON, W.Va. -- Members of a workgroup that will address the pending crisis in workers' compensation insurance coverage for more than 400 volunteer fire departments statewide may be announced Friday, a spokesman for Gov. Joe Manchin said Thursday.

Manchin announced plans for the workgroup on June 16, after BrickStreet Mutual said it would freeze premiums for VFDs for one year -- postponing rate hikes of 60 to 80 percent for most departments.

"We're going to fix this," the governor said at the time. "We've got fire departments that might not be able to continue to give service otherwise."

Manchin spokesman Melvin Smith said the workgroup was being finalized Thursday. "We're actually in the process of putting all the names together," he said.

The group will include representatives from the Department of Revenue, the Department of Military Affairs and Public Safety, the Insurance Commission and the Fire Marshal's office, as well as legislators and members of the State Firemen's Association.

BrickStreet, which under state law is required to offer coverage to VFDs through June 30, 2011, had requested a rate increase this spring to offset claims losses in excess of $4 million a year.

The Insurance Commission had approved a recalculation of VFD premiums that would have increased payments to BrickStreet from about $600,000 to just over $1 million a year statewide.

However, BrickStreet President and CEO Greg Burton agreed June 16 to freeze premiums for the coming year, following an outcry from VFDs.

Burton warned that, unless premiums are brought in line with claims losses, neither BrickStreet nor any other private insurers will write coverage for VFDs beginning in 2011.

"It's not an easy proposition to resolve, but at least we're going to be working on it," Sam Love, Firemen's Association lobbyist, said of the workgroup.

While the group will have one year to come up with ways to finance VFD premiums and to reduce claims losses, Love said the panel's immediate concern will be over the pending elimination of broad-form coverage for the VFDs.

BrickStreet had planned to eliminate the coverage, which protects officers and boards of directors of VFDs, on July 1, but agreed on June 16 to extend the coverage for 60 days.

Without the coverage, Love said VFD officers and board members could be held personally liable in lawsuits stemming from actions of firefighters under their command.

Love hopes the workgroup can come up with draft legislation to provide those officials with liability exemptions -- legislation that could be put on the agenda of a planned special session in mid-July.

The first meeting of the workgroup is tentatively scheduled for July 8.

Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.