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Part of City liability and insurance

The Star, March 12, 2012

By: Emily Mathieu

City ombudsman Fiona Crean issued a report last fall criticizing Granite Claims Solutions for how it handled third-party liability claims for the city. The insurance service firm has just been awarded a $14.3 million contract by the city to do the same job for the next five years. Steve Russell/Toronto Star

The city has awarded a $13.4 million contract to an insurance company slammed in a recent report by Toronto’s ombudsman for “misleading” city residents.

Granite Claims Solutions (formerly McLarens Canada) beat out four insurance companies vying for the five-year contract. The details were approved by the city’s bid committee on Wednesday.

The company serves as an external adjuster and handles third-party liability claims: claims in which damages are allegedly caused by negligence on the part of the city. Common causes include damage to private property caused by potholes, trees and sewage backup.

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