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Default friends working together in shop

Not talking about job workshops, but
working with friends on projects at home shop.
Looking for some advise or experiences.
My tools and shop and buddy or neighbor gets
hurt doing something. What do you do to keep
from possible legal problems associated with
an accident. How do you protect yourself
without first making a lawyer drawn up contract
with them? Or is that what you have to do. I'm aware of
making sure they know how to use tools safely
but what else.
CC
 
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