If something goes wrong and the child is injured, you/the tenant will have recourse against that party   

My insurance agent explained to me that if your tenant gets injured on the property, they will pay for the medical bills without asking too many questions up to the limit of your medical payments on your policy. 

Another client let his workers compensation insurance lapse before one of his employees was clipped by a driver and seriously injured.

If they were injured on the job, you would be liable.

Also the injured party does not have to prove it was your fault to get this coverage.  

The agent will tell you using MP to address premises injuries deters the injured party from suing you for a larger claim for pain/suffering etc.  

They protect your personal assets from creditors, which won't protect you if you have to make a personal guarantee for a loan to the LLC.LLCs do no protect you from personally and directly injuring someone during the course of your business activities.

If someone injures themselves and sues, they will be suing the LLC and not you personally.

Given the number of people who have posted here and assuming this is probably a relatively small percentage of the total number of people who have been injured by what seems like a fraud I echo the thoughts that class action may be in order.  

1 - establish relationships with at least two new private money lenders.2 - rehab and resale at least 3 houses3 - bring in a new full time sales agent4 - captain an overnight trip to the channel islands on a small sailboat5 - complete daily workouts to rehabilitate injured shoulders until spring6 - be less focused on politics and macro issues....be more focused on tasks and project management.7 - complete permitting for KVRC riverside park project (volunteer position)