We present the quantum limits to the magnetic sensitivity of a new kind of magnetometer based on biochemical reactions. Radical-ion-pair reactions, the biochemical system underlying the chemical compass, are shown to offer a new and unique physical realization of a magnetic field sensor competitive to modern atomic or condensed matter magnetometers. We elaborate on the quantum coherence and entanglement dynamics of this sensor, showing that they provide the physical basis for testing our understanding of the fundamental quantum dynamics of radical-ion-pair reactions. (C) 2012 Elsevier B. V. All rights reserved.