I absolutely require it and they don't move in until they provide proof of coverage and if it lapses, I will buy it for them and bill them (it's in the lease that I will do this).

Give time for your team to prove themselves before you discover a lapse that may cost you.  

Some of these guys get insurance and then let it lapse. 

In cases when an oral or written lease has terminated by lapse of time (“without cause eviction”), the tenant must be given at least 3 (three) full days and at least until the end of the time period to which he or she would normally have been entitled to vacate the premises.

It was one of the worst things that I have ever had to experience since I knew I wanted to go into Buisness I knew it could possibly show a lapse in my commitments which I have always taken very seriously despite what my bankruptcy will say about choices.

They owned their house free and clear but had let their insurance lapsed because they could come up with the renewal premium,  I thought what a perfect match. 

I went to a free guru seminar where the speaker was invoking Dodd Frank by saying that it regulated what assets a bank could hold.Specifically, he said that Dodd Frank prevented a bank from owning tax liens (and other property, but this was a tax lien specific seminar) that were about to convert to lapse.  

Their renter insurance is lapsed (I now know to add our company as an interest, thanks to this board), so they are resistant. 

I have already been approved for the mortgage for the new property and would like to move into it as my primary residence.I am wondering if since there would only be approximately three months of time that I would be in violation of that clause, if I could simply not transfer my insurance policy to a landlord policy until after the year has lapsed. 

A minor eventual lapse of a deadline or something but (1) it's better to know so you know what mistake to avoid in the future and (2) if everything you're saying is true, there appears to have been intention to deceive so all bets (for them) are off.