liability of buying renovation materials

[Daniel L.]

I'm a newbie investor and heard a rehab gal Robyn Thompson vehemently state one time that she would never buy materials for her renovations because it would open her up to being considered as a GC/employer if ever sued by an injured worker and another investor she knew had their wealth wiped out as a consequence of this. Does anybody here have any great insight into this/options to mitigate such liability? Before the suggestion gets made of placing investment properties in separate land trusts or separate LLCs...One difficult consideration Memphis imposes is something called Hall tax which imposes a 6% tax on the investment proceeds of entities like LLCs & trusts but not properties held by an individual (If I understood a lawyer correctly).

http://en.wikipedia.org/wiki/Hall_income_tax

So are there insurance offerings that address this liability and a person would just buy sufficient insurance coverage? Your insight is most appreciated!