Is Public Liability Insurance needed?

[Nidia Alvarado]

We have created 2 LLCs: LLC #1 - Holds rental properties; LLC #2 - Property Management Company for LLC#1. Under "Insurance" of the Property Management agreement it states that the Owner will maintain a PLI policy that names Management as a co-insured. We have insurance on each property under LLC#1. If we are the ones managing LLC #1 under LLC #2, which we also own, why would we need PLI? Would this be covered under the insurance we already have on the rental properties? Thanks for your input!