Protecting Your Business: Why Pallet Racking Needs Permits and Engineering

When it comes to warehouse operations, storage racking systems are often overlooked, until something goes wrong. In Western Canada, improperly installed or maintained racking doesn’t only put inventory at risk, it can expose your business to regulatory penalties, lawsuits, and in rare cases, criminal charges.

At Westbow Systems, we’re your safety partner. Whether you're planning a new install or upgrading existing systems in Alberta, British Columbia, or beyond, understanding the legal landscape is critical.

Why Racking Liability Is a Serious Issue

Racking systems are structural. When they fail, the results can be devastating: injuries, fatalities, operational shutdowns, and property loss. From a legal standpoint, these failures often fall under one (or more) of the following categories:

• Regulatory/statutory liability (OHS laws by province)

• Tort liability (negligence claims)

• Contractual liability (installation or service agreements)

• Criminal negligence (in severe or reckless cases)

Concerned about compliance? Let Westbow Systems perform a risk review of your facility. Book a consult now.

Alberta & B.C. Safety Regulations: What You Must Know

In Alberta:

Under Alberta’s Occupational Health and Safety Code (Reg. 191/2021), employers must:

• Ensure racks are engineered and maintained to safely support loads

• Ensure racks are placed on solid, load-bearing foundations

• Report any rack damage immediately

Failure to meet these requirements can result in:

• Compliance orders

• Fines or administrative penalties

• Legal exposure in the event of an incident

New amendments effective March 31, 2025 will further increase compliance expectations, emphasizing inspections and proactive safety planning.

In British Columbia:

Under WorkSafeBC's Occupational Health and Safety Regulation (Section 4.43):

• Racks must be inspected by a qualified person

• Load capacities must be clearly posted

• Employers must take reasonable steps to maintain structural safety

Violations can result in:

• WorkSafeBC enforcement actions

• Fines or stop-work orders

• Heightened risk in tort litigation

Need help meeting Alberta or B.C. safety codes? Westbow Systems works with licensed engineers to ensure full compliance from design to install.

Liability Under Negligence: Beyond Fines

If a racking system fails and causes injury or damage, you could face tort claims for negligence. Courts look at:

• Duty of care: Did you owe it to workers or contractors to ensure the system was safe?

• Breach: Were racks improperly installed, overloaded, or not inspected?

• Causation: Did that breach lead to harm?

• Damages: Was there injury, property loss, or business interruption?

Even without a regulatory violation, failing to follow best practices or standards (like CSA codes or manufacturer specs) can support a negligence claim.

Unsure if your racking system meets today’s standards? Westbow Systems can conduct a compliance audit. Start here.

Contract Terms Won’t Always Protect You

In many installations, the contract includes warranties, limitations, or indemnities. But here’s the truth:

• You can still be liable if negligence is proven

• Ambiguous clauses are interpreted against the party relying on them

• Courts take worker safety very seriously, even when contract disclaimers exist

If you’ve signed a contract agreeing to follow “applicable codes and standards” but fail to do so, you may be liable for breach, even if no injury occurred.

Need help interpreting your current rack installation contract? Westbow Systems can review it with you during the planning phase.

Could You Face Criminal Charges?

Yes. Under Canada’s Criminal Code (Section 217.1), anyone directing work has a legal duty to prevent bodily harm. In extreme cases, like fatal collapses due to reckless or grossly negligent installation, charges of criminal negligence can apply.

You’re especially at risk if:

• You supervised installation

• Ignored engineering drawings

• Failed to act on known safety issues

That’s why at Westbow Systems, every installation is certified by professionals and backed by documentation, from foundation checks to load rating signage.

Top Risk Areas for Racking Liability

Here’s what regulators and courts pay attention to:

• Engineer-certified designs for structural and seismic safety

• Compliance with CSA and NBC standards

• Pre-start safety reviews (PSRs) when required

• Routine inspections and damage logs

• Visible load capacity labels

• Anchoring and bracing per height/depth ratios

• Clear contractual roles and insurance coverage

Any lapse in the above can lead to serious liability, whether you're the owner, installer, or supervisor.

Worried your setup has gaps? Westbow Systems offers a full compliance package, design, install, inspect, and document.

Real-World Example: Alberta Warehouse Collapse

A Calgary-based company installs racks without anchoring them properly. A collapse injures two workers. Investigators find the system didn’t follow Alberta OHS Code section 187(2). The result?

• OHS fines

• A tort claim from injured workers

• Potential personal liability for the supervisor under Section 217.1 of the Criminal Code

All of this could have been avoided with proper design review, foundation prep, and documentation, services Westbow Systems provides every time.

How to Protect Yourself (and Your Business)

If you're involved in warehouse operations, here’s how to stay protected:

1. Engage licensed professionals for all design and install work

2. Comply with provincial OHS and building code standards

3. Schedule regular inspections and maintain records

4. Use clear contract terms for liability, insurance, and responsibilities

5. Train staff to report damage or instability immediately

6. Post load ratings on every rack system

Let’s take liability off your plate. Westbow Systems handles design, inspection, and compliance so you can focus on operations. Request a site assessment.

You Can Be Liable, But You Don’t Have to Be

Whether you're a warehouse manager, facility owner, or general contractor, the risks of improper racking installation in Western Canada are real, and multi-layered. But with expert design, code compliance, and detailed documentation, they are entirely preventable.

At Westbow Systems, we help you manage risk. Every project is handled with the structural, legal, and operational integrity it deserves.

Don’t leave safety and compliance to chance. Talk to a Westbow Systems expert today and build with confidence.