I am not large enough (16 SFRs) to self insure because I need some degree of coverage for catastrophic events. 

I recommend you have some amount of coverage for catastrophic events and injuries.

I feel we are at a place in the business where I should get this sort of coverage.

Coverage on a monthly basis, competitively priced, and very easy to work with. 

You might find the extra coverage isn't much more. 

Coverage and level of service beat out cost in my book every time.   

This will not require an additional tax filing requirement of a partnership return.Instead you and your partner would each report 50% of the income and deductions directly on your tax return form Schedule E.If you are looking for protection - you can obtain an insurance coverage as others have mentioned.

If I'm reading the rules correctly, under 10,000 square feet, RH lots are limited to 1 unit/2,000 with maximum building coverage of 85%.

@Angela Miller let me know if I can give you any advice but for management, we dont have coverage in south suburbs at this point. 

Jeremy,The difference in the cost is probably reflective of a difference in coverage or limits.