I wish it were a joke, but from many people's experience you might want to add;
Add attorney's fees.
Joking aside if it were a joke. Isn't running a dojo same as running a small business from this stand point? The city and state, and all others involved i.e. insurance agents all look at it as a small business venture. I would like you would too look at the dojo as a small business, and approach it that way. Part of being a small business owner is the possibility of being sued. Lots of people run businesses and are successful and dojos too.