MELVINDALE, Mich. – The city of Melvindale’s liability insurance is set to be canceled, something city leaders confirmed.
Mayor Nicole Shkira said she and the Melvindale City Council were informed of the cancellation during Wednesday’s city council meeting.
According to the mayor, the city’s corporate counsel and city administrator informed them that the insurance was canceled due to the city’s lawsuits.
Shkira confirmed the information through text message and said she had no further comment.
Liability insurance protects cities from financial losses arising from lawsuits and other legal claims.
One Melvindale city council member, who didn’t want to be identified, described the situation as an “embarrassment.”
That council member said the policy cancellation is expected to take effect sometime this year, though he couldn’t provide a specific date.
He noted that if the city can’t secure another insurer, the loss of coverage could mean any lawsuit in which it’s ordered to pay would be borne by taxpayers.
Local 4 also caught the city administrator as he was exiting City Hall.
He declined to comment, but after we asked a few questions, he said their current insurance company was the only one willing to insure them in that area because of their lawsuits.
Melvindale has faced a few lawsuits in recent years.
In May 2025, an officer filed a lawsuit against the Melvindale Police Department alleging racial and religious discrimination.
Repeated attempts to reach the city attorney for clarification about the cancellation timeline, which company cancelled, and the next steps were unsuccessful.
One council member declined to comment, another ended the call, and others did not respond.
However, before the city administrator left City Hall, he noted that the city attorney is working on the matter.
A public records request has been submitted seeking the minutes from Wednesday’s city council meeting, when officials were informed of the insurance cancellation.