We find 6% of parts and labor covers our shop supplies with a decent margin built in. (that pesky word profit) It does cap around $40.00 Also We do charge for items that can be inventoried, like paint, fasteners, wire ties and the such.
We inspected an older vw motorhome last year and it FAILED. exhaust manifold cracked and leaking. Hole in floor (large hole). Rear brake shoe lining completely detached from its backing. Brake light out. She was not Happy. She took the vehicle to another station who in turn passed it. I recieved a call from PA state trooper in charge of vehicle fraud. I was investigated. We did our due diligence documented everything and We were the ones that were scrutinzed. The womans son is a friend of mine. He asked why the other garage would pass the camper with a brake light out. He brought me the receipt. Passed with flying colors. The date of the receipt was the day after she picked it up from us. The women did not repair any of the issues, was issued a safety sticker fraudulently and we are the ones that are looked at. Damned if you do Damned if you dont. Moral of the story WRITE it down. If brake lines are really rusted we state that. no they can not be failed unless they are leaking but.... CYA
It all depends on what your policy is. I know we are covered for this type of situation. you should sit down with your agent and talk out scenarios and review your coverage. We at one time had a policy that would pay for subsequent damage but not the original "mistake". IE if a tech left a whell loose they would not pay for lugs or the wheel however they would pay for any damage caused by the wheel falling off. It cost an extra 40 bucks a year to cover the original mistake as well. a drop in the bucket and well worth the coverage imo.
We have many times been told by an insurance company that they will not pay our labor rates. Our rates reflect a professional shop with the proper tooling and knowledge to repair there customers vehicle. We do alot of work for bodyshops in our area and on more than one occasion have been in this situation....... My response? We are not a body shop and will not work for a bodyshop labor rate which is usually around the 50 dollar mark. there is a reason why they sublet out the harder electrical/electronic problems. We charge enough to keep our tooling and technicians capable of diagnosing/repairing these problems. The same applies to mechanical repairs paid for by insurance companies.