I spoke to my home insurance company (AAA) and they mentioned that they do not cover anything related to the new addition (no liability and no coverage on the new detached in law unit that will be constructed).Couple of contractors that I am looking into do not have worker compensation insurance and neither their sub contractors have worker compensation insurance. the GC might ave liability insurance.How do I go ahead in this situation to protect myself if somebody gets injured  (GC, workers or sub contractors) during the construction.any help will be appreciated.

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.

I found that NY gives tenants more rights than landlords here and could jeopardize me paying a mortgage, injure credit and maintaining a property was more time consuming than flippig and could not see the profitability here.

An injured tenant can only recover against the company.

Unlike my mom in law who is just sick and injured, even if you found the person or their children, they may not be legally make decision to sell.

Years ago I was a town manager when one of our EMT vehicles ran a red light and broadsided a pickup, killing a 15 year old girl and injuring her father.

Is the $2000 savings enough reward if he or his crew injures themselves and sues you?

This could be a maybe for me, but I would check with your insurance company to see if you might be held liable for a visitor getting injured in the pool. 

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

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.