I understand people are busy but not an excuse to turn business away by being negligent.  

So there are times it makes sense to hold for a few years as a rental and then sell, even if cash flow is negligible.

If your machine then I don't see how you can blame the tenants unless you could prove they were negligent somehow.Don't think you can take it out of their deposit.

There are potential cases if the inspector was negligent, but it’s difficult and expensive to prove.

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

Further, if named but no judgment is entered, or the balance is $0 or negligible, same difference.

I'm hoping to get some guidance:1) Do I have a case of professional gross negligence where I can sue for damages?

That's highly doubtful.There are trade offs for liquidity.If a fund is more liquid than others, it goes to follow they'll have more capital in instruments that are easy for the fund to liquidate (e.g. money market, CDs, short-term treasuries/munis).The ROI of all of those asset classes is negligible and (currently) below inflation. 

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

., or is it the owner that ends up with the lawsuit due to the PM's negligence?