In Los Angeles traffic radio news is always saying there's a "sig: or "cig" alert. What does that stand for?

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a SIG alert is defined as "any unplanned event that causes the closing of one lane of traffic for 30 minutes or more, as opposed to a planned event like road construction, which is planned separately"

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so basically, an accident that shuts down one or more lanes.

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"They came about in the 1940s when the L.A.P.D. got in the habit of alerting a local radio reporter, Loyd Sigmon, of bad car wrecks on city streets. These notifications became known as "Sig-Alerts." ...Caltrans latched on to the term "Sig-Alert" and it has come to be known as any traffic incident that will tie up two or more lanes of a freeway for two or more hours."

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View the link provided to read the history.

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A Sig Alert is defined by the California Highway Patrol as "any unplanned event that causes the closing of one lane of traffic for 30 minutes or more, as opposed to a planned event like road construction, which is planned separately." Sig Alerts are issued by the CHP and are posted on their Web site, broadcast on radio and television stations throughout California, and signalled to motorists via electronic billboards on the freeways. The term was added in 1993 to the New Shorter Oxford English Dictionary. (In practice, there is no standard spelling; the CHP Web site uses "SIG Alert," "SigAlert," and "Sigalert," all on the same page.)

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The others have already answered what it means.

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Sigalerts are named after an early traffic reporter in Los Angeles, Loyd Sigmon. You can read more about Loyd Sigmon and the history of Sigalerts on Wikipedia.
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