Running A-fowl of the Law

Running A-fowl of the Law

Running A-fowl of the Law

Running a farm operation requires walking a fine line sometimes between business operations and regulations. While most farm owners do a great job maintaining proper operating procedures and animal handling, some farmers find themselves cutting corners that put them squarely at odd with regulators and animal rights activists. One Maine-based farm found themselves paying large fines for failing to provide adequate food and shelter for a few of their hens, not to mention animal cruelty allegations.

The hen supplier Maine Contract Farming was recently handed an invoice for $25,000 in animal cruelty penalties and $100,000 to help the state monitor hen and egg operations throughout the state. The charges came after undercover video revealed allegations of animal cruelty, showing animals being mistreated and left to die in trash bins.

The fines aside, the company could see longer tailed business backlash from the incident. Since videos exist showing the instances of animal cruelty, the company could have a difficult time recovering from the negative image and the resulting impact on business profits. Maine Contract Farming has released statements reiterating their commitment to animal safety and welfare, but damage to the reputation can take years to overcome.

From an insurance perspective, such illegal or unethical practices may be covered under an employee practices liability policy, or errors and omissions policy. Also, larger farm businesses with less management oversight would do well to consider purchasing business reputation coverage. While many companies do their best to prevent such instances, larger operations may lack the supervisory capabilities of say an overnight shift or a large-scale operations spanning a number of facilities on the same property.

Preventative measures include installing video cameras in unsupervised areas. Alert employees to their responsibilities and train employees regularly on proper animal handling and operations oversight. Also, introducing accountability to your employees can help to reduce significantly the likelihood of cruelty or misbehavior that could damage irreparably your reputation and business practices.

If you're unsure what your policy covers, contact us and we'll go over your current policy with you. If you don't have coverage for employee practices liability, contact us.

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