Polygrade, a Toronto-based InsurTech developing AI-driven claims software for warranty providers, has launched publicly with $6.3m in funding to automate more of the work involved in processing and resolving warranty claims.

Construct Capital led the round, with American Family Ventures and Nine Four Ventures also participating. Polygrade will use the funding to expand its Forward Deployed Engineering, go-to-market and partner enablement teams.

The company also plans to expand beyond home warranty into extended warranty, original equipment manufacturer (OEM) warranty and equipment breakdown insurance.

Polygrade is targeting a part of the insurance market where claims systems have traditionally focused on recording information, routing tickets and tracking progress rather than carrying out the work needed to resolve a claim.

Its platform uses AI agents across five stages of the claims process: first notice of loss, pre-dispatch triage, authorisation, parts procurement and payment. Each agent operates within rules and limits set by the warranty provider, with cases outside those parameters referred to human staff.

The company is already working with warranty providers including Fidelity National Home Warranty, which uses the platform in production, and Cinch Home Services, which uses it for appliance dispatch triage and parts sourcing. Its supplier network includes Encompass, UED, Sibi and Marcone.

Polygrade’s software sits on top of existing warranty systems, using information from those platforms to determine and carry out actions across the claims process. The company is also developing an intelligence graph connecting policies, claims, decisions and outcomes, allowing information from previous claims to inform later ones.

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