Pallet Rack Safety Measuring the Cost of Noncompliance

Pallet racking forms the backbone of modern warehousing and distribution operations. However, most managers spend little time thinking about racking — it’s more a part of the infrastructure than a living, breathing component of the workflow.

But pallet racking is also a system, and it’s potentially susceptible to damage. Ignoring pallet rack safety can lead to a cascade of significant expenses that go far beyond the costs of repairing or replacing damaged components: Operational disruptions, inventory losses, and injuries to personnel can have enormous repercussions.

In this article, we’ll discuss those potential costs. We’ll also look at a few proactive measures that can protect pallet racking (and provide an exceptional ROI in the process).

Pallet Racking Safety: The Cost of Accidents

Let’s look at the costs of pallet racking that most operations incur without redesigning their systems:

• Minor Repair Costs: Repairing a single damaged upright will take about four hours on average, along with the cost of materials (upwards of $200). There are solutions on the market to make that process quicker — but you’re still dedicating time and money to the repairs.
• Inventory Loss: Major vehicle strikes can ruin products due to spillage breaks, or collapse. The cost of those losses varies significantly, but in addition to the inventory, you’re paying for reduced productivity.
• Fulfillment Delays: Damaged racking slows fulfillment, which impacts customer satisfaction.

The Cost of a Pallet Racking Accident

The more significant expenses come into play when a serious accident occurs. The average workers' compensation claim costs $41,003 in the United States — and OSHA can assess thousands of dollars in fines for serious violations. 

Those are typically assessed through OSHA Standard 1910.176, which covers materials handling and storage. Relevant standards:

• 1910.176(a) Use of mechanical equipment. “Where mechanical handling equipment is used, sufficient safe clearances shall be allowed for aisles, at loading docks, through doorways and wherever turns or passage must be made.” This can apply to vehicle travel lanes that run too close to pallet racks, raising the potential of a strike.
• 1910.176(b) Secure storage. “Storage of material shall not create a hazard. Bags, containers, bundles, etc., stored in tiers shall be stacked, blocked, interlocked and limited in height so that they are stable and secure against sliding or collapse.”
• Section 5(a)(1) of the OSH Act (General Duty Clause): This clause requires employers to furnish a place of employment free from recognized hazards that are causing or 1 likely to cause death or serious physical harm. OSHA often uses this clause to cite employers for unsafe racking conditions when no other specific standard applies.

As of 2025, the maximum civil penalty amounts that OSHA can assess are $16,550 for serious violations and $165,514 for willful or repeated violations — along with a failure-to-abate penalty of up to $16,550 per day.

Add in insurance premiums and legal settlements, and the bottom line is clear: You don’t want to deal with an accident involving infrastructure!

Protect Pallet Racking with Structural Barriers, Rails, and Strike Protectors

You can definitely reduce pallet rack damage. Good forklift operator training focused on safely working around racks is a great start. Regular rack inspections are also key – catch damage early before it gets serious. Always stick to the posted load limits and keep your aisles clear.

But even trained operators make mistakes, and procedures alone aren't always enough. Physical barriers add an essential layer of protection with a great ROI, and BHS offers a range of solutions designed specifically for warehouse environments:

• Structural Bollards - BHS Structural Bollards provide robust, floor-mounted protection against vehicle impacts. Constructed from heavy-duty steel pipe and featuring a durable powder-coat finish for high visibility, they effectively safeguard vulnerable corners, rack ends, machinery, and building structures. Installing bollards is a straightforward way to prevent costly damage from forklift collisions in critical areas.
• Protective Rails - Ideal for defining traffic lanes and protecting inventory or equipment near aisles, BHS Protective Rails offer low-profile guidance. These rails help steer forklifts away from racking and pedestrian areas, minimizing the risk of low-level impacts and sideswipes.
• Structural Barrier Rail - For maximum protection against direct forklift impacts, the BHS Structural Barrier Rail system delivers. Its heavy-duty, modular design allows for customized configurations to shield pedestrian walkways, work zones, building columns, and pallet rack aisles from strikes.
• Pallet Rack Protectors: BHS Pallet Rack Protectors offer targeted defense for the most vulnerable part of your racking system: the upright columns. Designed to absorb and deflect impacts from forklifts at floor level, these heavy-duty steel guards install easily and extend rack life.

When you treat pallet racking as an essential system — and protect it appropriately — you can run a safer, more efficient facility. 

BHS is here to help: To discuss solutions, call 1.800.247.9500 and speak with a member of our sales team.