Rep to pay past employer for covenant breach

Bluefin-owned The Healthcare Insurance Group (THIG) has agreed a settlement with former appointed representative, Andrew Tomkins.

This follows High Court action taken out by THIG against Tomkins, who resigned his position in January 2010. Subsequently, THIG commenced legal proceedings, including obtaining an injunction, to restrict Tomkins from contacting THIG clients and using confidential information. THIG also sought damages.

THIG also took action against Tomkins’s new principles KGJ Insurance (Stourbridge) (KGJ), alleging that they were aware of Tomkins’s activities, which THIG believed were in breach of post-termination restrictions, including restrictive covenants.

In a statement, THIG said under the terms of the injunction, the parties have agreed to pay “a substantial sum” to THIG and the legal action has now been dismissed.

THIG’s managing director Iain McMillan said: “We take the breach of restrictive covenants very seriously indeed and will always seek to enforce our rights against any former representatives who contact customers or use confidential information in breach of their agreements. This will include legal action if necessary.”

KGJ Insurance could not be reached for comment.