Once your assets are discovered you can be sued personally whether you are liable or not.Trust agreements are not recorded.I have a friend that was sued via his LLC and personally over an accident on one of his properties.

If it's because they ran into an unexpected windfall, then you might want to look for other factors that show they'll be financially responsible enough to pay rent when the first year is up. 

Always expect the unexpected.

If you load up your HELOC and life drops something unexpected, you always have the ability to use the money building in your HELOC for that unexpected expense instead of towards the next mortgage lump sum.I hear the argument that you could be better served using that extra money to invest into new cashflowing properties.  

Getting a portfolio of properties with the right turnkey company seems to me to be a good approach because, if the turnkey company is good, although there may be some tenant issues and unexpected capital expenses, the overall picture should be in my favor is my thinking here.

Your JV partner sues you, the GC.GC might have some exposure to accidents on-site -- much more so than a rehabber because working conditions would be GC responsibility.

A few unexpected setbacks without funds to deal with them can really mess things up.Be sure to read the info here as well: http://www.biggerpockets.com/starthere

I was wondering about getting some sort of "business insurance" for that for liability-- accidents etc with workers etc.  

Understand too, that if you lose a law suit for some activity outside your business ventures. like a car accident or a hunting accident, your assets are at risk and any and all of your LLCs owned are your assets, this is coming in the back door to attach your assets held, just as if you owned stock in a corporation, that stock can be sold. 

The fire damage repair process is always unexpected and usually comes at an inconvenient time.