An example of this would be a car accident that you caused.

Dealing with the city of Cleveland Building department trying to get plans approved was absolutely horrific.

Kind of by accident.

I got into real estate investing by accident and it's totally a side hobby/gig as everything I do is for passive income as to focus on my regular job. 

In the event they someday win a judgement (let's say they're in a car accident and receive $10,000 from an insurance company) or someday sell a home (perhaps a parent willed it to them) you (and anyone else who has a lien against them) will be first in line to receive your owed money

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

He never did pay for the car (it was a cheap island beater, that didn't bother me much, it was better that he was finally gone) and the great part about that was about 4 months later I get a call from a debt collector asking for a significant amount of money due to an accident the vehicle was involved in without insurance or valid registration (he never got the title transferred!).

Be very careful, there are some truly horrific pm companies in Memphis.

I fell into the land business by complete accident that year, and subsequently learned that business inside and out.

I found the property by accident.