[jeffspower]

I agree that if it was in their building, it's ridiculous that they won't pay for it, unless they filed a police report that they had a break-in. If it was outside, you are pretty much at their mercy if they want to pay for it or not. As far as insurance goes, I can speak from experience (owned a shop for years) that most insurance won't pay squat. A garage keeper's policy with under a $500 deductible isn't common- it would be way too expensive. Most carry a much larger deductible. Some shops don't carry garage keepers coverage at all- they figure it is the customer's responsibility to have insurance on their vehicle, and as it sounds from your lawyer, the law would agree. Since you have stated that the work is being done under the table, i'm assuming you are getting a cut- rate deal. If so, that might be why they are refusing to pay for your loss.