Prichard, Ala. Loses Municipal Insurance, Recalls Fleet Vehicles
Alabama city grounds its fleet following municipal insurance issues, raising public-sector liability concerns.
Source: WEAR-TV ↗
Prichard, Ala., grounded its entire non-public-safety fleet after the city’s municipal insurance through AMIC expired with no replacement policy in place.
The Prichard City Council declared a state of emergency and voted to recall all city-owned and operated vehicles. The council directed employees not to drive uninsured city equipment once coverage lapsed.
City Council Attorney Moshae Donald Walker said that because if the coverage gap, city employees could be legally exposed, and the city probably would not be able to pay for a defense for any city employee who is operating within the lines of their employment and then gets sued. The council also noted that the city cannot self-insure.
Although public safety vehicles are exempt from the recall, Walker said the exemption provides no financial protection. “They should show up, but those fire trucks and whatever actions they take after midnight, there won’t be insurance for them because we don’t have any insurance,” Walker said.
The city’s sanitation operation is separately affected. RDK, which leases trucks to Prichard, recalled its vehicles because it did not want its equipment operating uninsured. The council’s emergency declaration was intended to allow execution of a temporary sanitation contract.
Mayor Carletta Davis is seeking quotes from other insurance companies. Councilman Roy Smith said a second sanitation company has been providing service and the city is working to finalize a short-term contract while the fleet situation is resolved.
