If he doesn't have it and one of his employees gets injured it could hit your insurance for payout.  

If the deed is in your name, the insurance is in your name, and the mortgage is in your name, I think it's reasonable for the person injured to assume you are the owner.

In terms of liability, will those people hire for free with the increased liability if I got injured? 

T likely has little or no $ if their kids friend was to drown or have a permanent injury rendering the injured a paraplegic and needing special care for the next 40 years.

What happens if one of you is suddenly injured, unable to complete your duties, in a coma, dead, divorced, gone missing, locked up, etc etc etc.

I can’t stress enough weather happens fast up here and I’ve heard stories of people being cleaned out due to someone injured on the property due to slipping on ice or paying for a new car and repairs because of some jerk plowing the driveway.

For example, if you were wantonly negligent in repairing a known problem at the property and someone was injured or killed, the law isn't going to allow you to hide behind a legal instrument, especially if you are the sole member and actively involved in day to day operations. 

You mentioned in your earlier statements that you sent him messages or pictures every time there was a carpet fray or someone was injured from a staple or a nail pop etc.

Renting it without approval could land you in big trouble if tenant complains or if there is a fire and your basement and tenant is injured.  

I was thinking if renter injured themselves and tried to sue.