Another thing I learned (this time without damaging something) is that it is crucial to make sure the indexing pin is not engaged when the lathe is going to be used for turning. After my trial engraving I was just about to start the lathe to do some turning and a split second before engaging the drive I thought about it. Too close for comfort!
Just an idea:
My lathe has a original dividing attachment which has a safety for these occasions. It has a microswitch that interrupts the feed to the motor relay when the attachment is connected to the main spindle. It only allows the motor to run when the dividing attachment is disengaged.
It may be possible to come up with something similar for your situation?
In my experience I seem to forget these things sooner or later.....
Peter