They injure themselves and sue me.Now, that said, if I were to rent to a licensed contractor, I might be willing to trade work within the licensed trade for a break in rent. 

Then assume a tenant falls and is injured on your property and let's assume the successfully sue and the damage amount exceeds the insurance in the trusts' name.

My second question is if I hire a traditional builder or developer to build on the lot which I own, am I better of from a liability standpoint to then deed the lot over to the builder (presumably so its on them if a worker is injured) and then have the property deeded back to me when done?

If everyone had the right to cancel leases due to family issues then no leas in this world would be worth the paper they are written on.We own several apartments and once in a while a tenant gets injured severely, or they get terminal cancer that incapacitates them.

That lawsuit is a claim for fraud, and that’s what fraud typically is...a misunderstanding and someone being “injured” and wanting to hold the other responsible for it.

You could face significant liability if someone is injured by an improperly-assembled cabin.

Should a tenant get injured, or if someone’s visiting your tenants gets injured, the renters insurance will pick up the liability (normally around $100k coverage) before they attach to your homeowners liability coverage. 

Our MAIN concern is her getting seriously injured (or dying) in our rental home. 

Before all the goodie too shoes with a lot of money run in here and talk about a tenant getting injured or suing you for renting an illgeal structure, even if they KNOW it's illegal you can settle with them and it'll be a lot less than $300,000.

He apparently got injured falling off a house working.