I battle with many friends on this type of stuff. Until I get my business licence approved (which then allows for insurance, etc.)
I have shot a conference for the State Bar association and while sitting with 1 state supreme court justice and 2 former DAs this is what I have done that limits back-lash and still serves the clients:
I do a flat fee where the client owns the images for the fee. I have been doing about $300 per 8hr day ($150/4hrs) which includes "basic" editing and generally 50-100 edited photos (I usually provide more extensive edits but I always "sandbag" my commitment.) Any terrible shots (out of focus, marker blanks, bad settings, and the like) I delete. I separate the images into Edited, Good, & Out-takes and turn that over to them on a DVD and accept payment then. Nice, simple, and zero commitment down the road.
A simple contract that lays the above out clearly, that the client will own the images and is responsible for final edits and printing if desired, or may seek additional services from me that are separate of this contract. With that type of set-up, you are only liable to hand over the images and are basically clear of 99% of any law suits that are heard of (in the US) by making them responsible for finishing or if they want additional major editing or want you to set-up printing of books, they know that comes at an additional fee and is not included. I add an optional "rider" that allows me to post and use any photo for educational, personal use, entry to contests or professional examples (No commercial/stock use) and allow them to decide if that is ok and if so, sign that piece as well.
Now I know some pros out there will cringe and shake their heads but when you are not set-up as a pro, with long term archiving, Tax collection, set sales site, Insurance, etc. I don't see the point in acting like one. One has to think about if they call you 2 years from now and you lost all the images to a bad hard-drive or if they are not pleased with your work and sue you. You need to protect yourself from any law suit or the potential to effect future sales since the opportunity for disaster to happen is too great. 999 out of 1000 "off the cuff" shoots never go bad but if one does, you can loose damn near everything if you aren't careful.
If you make it clear that you are not a pro, they own the images, you only guarantee basic editing and leave it to them to say it is ok or not for you to use them as examples, you will be good.
My price break down basically equals this:
$300/day = 8hrs
100 edited images (5min/image average) = 8 hrs of editing.
16 hrs of total work for $300 = $18.75 per hr.
When I show that basic math to potential clients who question the price I have never been questioned on the price as that is 3-4times cheaper/hr than a plumber or a body shop mechanic.