The Legal Importance of Regular Pallet Racking Inspections

When it comes to pallet racking, most people immediately think about forklifts, beams, and keeping operations moving smoothly. But there’s another side to pallet racking safety that’s just as critical: the legal and insurance obligations. Failing to maintain and inspect your racking system isn’t just a matter of compliance with Australian Standards — it can have serious consequences if something goes wrong.

Australian Standards and Workplace Law

In Australia, pallet racking must comply with AS 4084:2023 (Steel Storage Racking). One of the key requirements of this standard is that racking must be inspected regularly — at least once every 12 months by a qualified person.

Why? Because pallet racking is classified as plant under workplace health and safety legislation. That means the duty of care sits with the business owner or operator to ensure the racking is maintained in a safe, compliant condition at all times.

If your racking isn’t inspected and kept in line with AS 4084, you’re not just risking structural failure — you’re also leaving your business open to liability under workplace health and safety laws.

Insurance Considerations

Insurance companies take compliance very seriously. In the event of a warehouse incident involving pallet racking, one of the first questions asked will be:

• Was the racking compliant with Australian Standards?

• Were regular inspections carried out and recorded?

• Was damage identified and repaired in a timely manner?

If you cannot provide documentation to show that your racking has been inspected and maintained, you may find yourself in a difficult position. Insurance claims can be reduced or even denied if negligence is proven. That means the cost of damaged stock, destroyed equipment, or injuries may fall directly on the business.

Liability in the Event of an Injury

The most serious consequence of failing to inspect pallet racking comes if someone gets hurt. Unfortunately, pallet racking collapses can cause severe injuries or fatalities.

If such an incident occurs and it’s found that inspections weren’t up to date:

• The business owner may face legal action.

• Managers and directors can be held personally liable.

• Penalties under workplace safety law can include hefty fines and, in extreme cases, imprisonment.

Even if no one is injured, a racking collapse can trigger investigations by workplace safety authorities, which can lead to enforcement action and reputational damage.

The Cost of Non-Compliance vs. the Cost of Inspections

Some businesses hesitate at the cost of regular pallet racking inspections. But compare that to the potential fallout of non-compliance:

• Rejected insurance claims worth hundreds of thousands of dollars.

• Business downtime during investigations.

• Replacement of stock and damaged racking.

• Legal costs, fines, and compensation.

• Worst of all — the human cost if a worker is injured or worse.

In contrast, scheduling an inspection once every 12 months is a small investment for peace of mind.

Documentation Is Key

It’s not enough to simply say your racking has been checked. You need proper records. After a professional inspection, you should receive:

• A detailed inspection report highlighting any damage or compliance issues.

• A traffic light classification system showing what requires immediate action.

• A Certificate of Compliance (if the system passes inspection or once repairs are made).

These documents prove to insurers, regulators, and auditors that you are meeting your legal obligations.

Conclusion

Regular pallet racking inspections are more than just a safety measure — they’re a legal and insurance safeguard for your business. By keeping your inspections up to date, you’re not only protecting your staff and stock but also protecting yourself from potential liability, fines, and insurance complications.

In simple terms: if it’s not inspected, it’s not compliant — and if it’s not compliant, it’s not safe.

Don’t leave it to chance. Book your annual inspection, keep your records, and know that your warehouse is both legally compliant and fully covered in the event of an incident.