Prichard mayor's self-insurance claim questioned in investigation

An investigation by WKRG News 5 suggests the City of Prichard may not actually be self-insured, contradicting claims made by Mayor Carletta Davis following the city's loss of municipal insurance coverage on August 1.

After the insurance lapsed, Davis sent a letter to city employees indicating they would be covered under a self-insurance arrangement temporarily. However, the news investigation raised questions about whether Prichard actually has the financial capacity or legal standing to operate under such a plan.

The findings raise concerns about potential liability exposure for city employees and residents during any period without traditional municipal coverage. Self-insurance typically requires significant financial reserves and regulatory approval, neither of which appear to be clearly documented in Prichard's case, according to the WKRG report.

The investigation comes as Prichard continues to face ongoing financial challenges that have plagued the municipality for years. The city has not yet responded publicly to the specific findings about its insurance status.