Hi, I run a mobile iPhone repair business and today encountered a customer that gave me a broken phone and when I couldn’t fix it, demanded money. How do i protect myself from Liability legally?

The customer brought me a phone that was internally damaged without my knowing. When i went to fix his display and install the new one, it wouldn't power on. We went back and forth for about an hour, and eventually I had to pay him for the device because him and his friend began intimidating me and I didn't want issues. How do i legally protect myself from liability to a customer's product through maybe a contract or something? I lost $230 today 😦

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