Yep,
Rivits has it down pat.
My public liability insurance is the single biggest cost .
It is 3% of my annual turnover or $ 4500 which ever is the highest.
Sounds very expensive, but they cover all legal costs and you wont get much of a mouth in front of a beak for $ 4000 down here.
That gives me $ 200,000,000 of cover.
If I had a workshop with employee mechanics that figure has an addition cost on a per mechanic basis.
There was a retail shop & workshop about 5 miles away, family business & good profit but he sent out a mower with no discharge chute cover and a non functional seat switch.
The customer loaned his mower to his neighbour who got off to open a gate, slipped, put his foot into the open deck chute and I don't need to tell you the rest of the storey.
OH&S prosecuted the mower owner for operating a dangerous machine & failing to have the mandated safety warnings on the machine .He lost his farm over it. Small people are easy targets and ministers like to sprout X number of successful prosecutions to prove they are doing a good job.
The insurance company covered the shops cost , the medicals & compensation for the farmer who lost his leg.
Then they sought to recover cost from the mower shop owner for "conrtributory neglegence".
They sold his business, the land it sat on & his home, His wife left him and being over 70, broke & homeless, he applied the 12 bore solution.
This was before my time, but I was curious about what happened to his shop cause about 1/3 of my customers have one of his tags on their mowers.
So loosing a customer or two is no big worry to me, 100 good customers is a lot better than 200 customer who expect me to jepodise my future cause they are too bone lazy to put a brake on before they get off their mower.
I am increasing my customer base all the time because I treat them with respect and take the time to explain what is going on, much like I do with my posts here.
Customers appreciate this, particularly women who account for about 75% of my work as most mechanics treat them like idiots.
There are a lot more widows and old spinsters around here who are happy to pay me $ 15 to put the chain back on their chainsaw or pop the deck back on their mower.
And funny enough, most of them ask me to fix the seat switch that their husband went to great lengths to disable.