I would like to know how professional mechanics manage liability in the event that something goes wrong with a repair and a customer's vehicle is damaged or destroyed.
Let's suppose for example, that Joe Mechanic disassembles an engine for an overhaul and reassembles it incorrectly, causing major damage when the motor is started. The damage in this case could likely be a total loss on a modest used car.
If Joe works at a professional shop, is he personally liable to pay for the damage? Would the shop be financially liable first? Would Joe or his employer likely carry some sort of insurance to cover this situation?
If Joe works on his own, what options does he have, then?