An Alabama city, long plagued with budget shortfalls, charges of corruption and a dwindling tax base, has lost its liability insurance coverage amid an ongoing financial and leadership crisis.
Local and state news sites reported that the Alabama Municipal Insurance Corp. did not renew coverage for Prichard, a city of about 18,000 next to Mobile in the southern end of the state. Policies expired Aug. 1.
The insurer, a Montgomery-based mutual insurance company owned by member cities, cited too many claims and a lack of response from city officials to inquiries from adjusters, WALA news reported.
No bids for coverage were received from other insurance carriers, news sites reported. The drop in coverage affects first responders and most city workers and services.
Prichard, which has sought bankruptcy protection twice in recent years, is embroiled in a lawsuit between city council members and the mayor. The council has alleged that the mayor has failed to provide clear financial solvency information and has abused her power by contracting for services without council approval, AL.com has noted.
The mayor, Carletta Davis, has countered that she has been denied accurate information because of software and other problems.
The council last week voted to recall all city vehicles, except emergency response vehicles, that have been driven by city employees.
Photo: Community activist Carletta Davis, who took office as mayor of Prichard late last year, in a 2023 photo. (AP Photo/Brynn Anderson)
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