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you could point out to them that it's ridiculous that A: it was shallow enough (1ft?) to hit with a spade, and B: clearly either not armoured or strong enough to resist a spade!
That's why I was so angry. It is dangerous having the cable so shallow and in a flower bed
You must add to your terms and conditions, something like this:
We are not able to accept responsibility for any damage to (or cost involved with) any underground hazards, obstructions or services not made known to us in writing or apparent on visual inspection.
It's very important to have T&C, in my first year I was aerating a garden and a client claimed I hit his mains water supply with a 3" tine!
Luckily he was all right about it, however it made me realise you need to protect yourself with T&C's....
that will take some upholding, you are expected to check any excavation for services, you damaged you pay, home owners very rarely know where things are
There is little you can do , you damaged it you pay, the electric co. will tell you there is no regulation for service depth or to have it taped with marker tape, as it could have be moled in. when you get the bill arguee to cost and offer a amount near it they stand a good chance of accepting it and pay it monthy installments, i have damaged 20 or so cables and argue them all.
you need to invest in a cable avoidance tool for jobs like that, i may sound harsh but its your fault no one elses