Paper files can be as bad as the IT based stuff. If you are going to keep paper records you will need to be systematic: you can’t just put into filing cabinet and forget about it. You will need a system so that someone (years later) can retrieve the file. It also needs to be useful after all those years. Does it have all of the information that might be required on it? Can it be cross referenced with other information for example accident records?
Have you somewhere to keep it? I worked for the civil service and they had a thorough but bureaucratic system for record keeping. It had more or less full time archivists running it. They made sure that the records were properly labelled and the irrelevant stuff as weeded out. Do you want to invest time and money in something like this?
The ‘cloud’ is appealing: it has nigh infinite capacity and the format is not relevant. There might be an issue with data protection but talk to your vendor about this.