This paper presents a novel vector quantizer (VQ) design algorithm for a burst error channel (BEC). The algorithm minimizes the average distortion when the BEC is in normal state of operation, while maintaining a minimum fidelity when the BEC is in the undesirable state. An iterative design procedure is first derived in the algorithm for obtaining a local optimal solution. A novel genetic scheme is then proposed for attaining a near global optimal performance. Numerical results show that the algorithm significantly outperforms the VQ techniques optimizing the design only to the simple binary symmetric channels.