Cullum declares the integrity of the broker/insurer relationship is restored.
Towergate has reached an out-of-court settlement with Chaucer following claims the insurer poached staff and clients.
In a statement, Towergate chairman Peter Cullum said that an agreement had been reached with both Chaucer and five former Towergate staff who had joined the insurer.
He said: “We are pleased this matter has been resolved and that Chaucer has acknowledged their mistakes in respect of the employee contracts for the five staff involved.
“While we received damages and costs, this was not my main aim, which was to help restore the integrity of the broker/insurer relationship regarding customer contact.”
In a statement, Chaucer said: “Chaucer is pleased to have reached a commercial resolution and that all issues have been satisfactorily resolved.”
The settlement is believed to be up to £500,000, including legal costs.
Insurance Times revealed last month that Towergate Underwriting Group had launched a High Court case claiming that Chaucer had poached its competition car business after terminating its underwriting contract with the broker.
Towergate also claimed that 10 former employees had broken the terms of their restrictive covenants. It has not pursued its case against five of them.
In the writ, Towergate accused the employees of breaching fiduciary duties and restrictive covenants. Chaucer was accused of breach of contract, breach of confidence and dishonestly assisting breaches of fiduciary duties.
This is the latest in a string ofcourt cases over alleged breaching of restrictive covenants.
Last year, Towergate received a six-figure sum in an out-of-court settlement from former staff members Jeremy Clifford and Adrian Littler, who both left the company at the beginning of 2007 to found their own broker, CLA Risk Solutions.
The broker’s long-running court case with Bob Beckett’s Insurance Risk Solutions also ended in an £825,000 out-of-court settlement, although costs were predicted to reach £1m.