Biosecurity breach
A logistics company based in Manchester generates approximately £15 million in annual revenue and employs around 120 staff. The company received correspondence from the Department for Environment, Food & Rural Affairs (DEFRA), alleging breaches to controlled imports. The initial letter alleged that six consignments of machinery, subject to biosecurity control, were being stored outside of the biosecurity storage area on two different occasions. The penalties for these breaches were 5 years imprisonment or a £25,000 fine (or both) for an individual, and up to £150,000 for a company.
Claim
DEFRA carried out an investigation into the alleged breaches by speaking with staff members and conducting a review of the logistics company’s documentation and CCTV footage. DEFRA found that the storage of imported equipment was outside of the company’s premises prior to quarantine cleaning and subsequently advised that a hearing would take place once the facts have been determined.
The logistics company advised that although they may have stored equipment for quarantine processing outside the designated area, they had previously applied for an expansion of the approved area several months ago.
Despite the current action, DEFRA approved an enlarged area for the storage of quarantined equipment to mitigate potential exposures of this kind in the future. The company has a logistics insurance policy in place, which was the primary policy to respond. However, CFC also contributed approximately £25,000 to the investigation costs under the management liability policy.
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Legal disclaimer: These examples are intended for illustrative purposes only and not intended to address the circumstances of any particular insured. Each claim submitted to CFC by an insured is based on the terms and conditions of the coverage provided to that particular insured and the facts and circumstances relating to a particular claim.
