The Secret That Racking Importers Don’t Want You To Know

As we all look for potential cost savings in our business, there is always the temptation to go with the cheapest option available without fully appreciating the potential long term impact that the decision could have on our business.

Let’s be honest we have all done it for items such as photo copiers, computers and office furniture where we thought we could survive with the cheapest option. Unfortunately whether it is through expensive consumables or inferior quality products that do not stand up to the rigours of work, the decision often comes back to haunt us.

But when it comes to items that can have potential health and safety dangers, such as racking, it is essential that we take into consideration the potential impact of problems caused by inferior products.

Second only to used racking systems which is inherent with potential quality issues, the major concerns in the racking sector surround the growing number of distributors who are offering racking that is imported from non EU countries.

These imported racking systems can provide a degree of cost savings at the outset however the problems arise when the client is looking for replacing parts, additional bays and safety accessories that either cannot be sourced or do not match their existing material.

But by far the greatest danger is that is overlooked by clients and in some cases the distributors, is that of Product Liability Insurance.

Product liability insurance is a key element in racking as it provides you, the client, with the peace of mind that if an accident occurs which can be traced back to a problem caused by the manufacturer, it will be their responsibility to finance any losses or claims awarded.

Manufacturers out with the EU do not have to provide product liability insurance which means that any indemnity is passed to the distributor of the system.

Unfortunately many distributors do not have the necessary insurance to protect their business and rather than bearing the financial cost of any claims held against them, will simply opt for voluntary insolvency.

So when you are considering your racking solution, it is vital that you ask your distributor to provide evidence of the product liability insurance as well as full details of the original manufacturer.

If you have any questions or are in any doubt as to the origins of your racking system, contact us today for a no obligation discussion.