@Shafi Noss, from my understanding, what you're describing is definitely unlawful.

I wouldn't take my kid down there when we first started.I went through the whole unlawful detainer process with one guy and ended up with the sheriff kicking him out and storing his things for 2 weeks until he finally came and got it all.

Unfortunately, eviction (unlawful detainer motion) is the only way for a landlord to regain possession of a property when a tenant refuses to leave voluntarily. 

Unlawful to conduct business without license or registration certificate It shall be unlawful for any person, directly or indirectly, to engage in or conduct, or to advertise or hold himself out as engaging in or conducting the business, or acting in the capacity of a broker or salesperson, cemetery broker, cemetery salesperson, campground membership salesperson, time-share salesperson, builder-owner salesperson, rental listing referral agent or cemetery company within this Commonwealth without first being licensed or registered as provided in this act, unless he is exempted from obtaining a license or registration certificate under the provisions of section 304. § 455.302.

I had a tenant whose business was shut down by the city of Chicago for unlawful activity in my commercial unit, to dispute the rent she paid me over the last two months and got her money back.

CRCCP 1A - Summons in Forcible Entry & Unlawful Detainer 3.

We would like something else, probably 1 million to start, that would help protect us from other potential lawsuits (unlawful evictions, injury, death, etc)I’m unsure which type of policy would be best to blanket cover our on LLC and would allow us to increase our coverage as the portfolio of properties increase.

....another event I needed to add to the above post is that after the city council passed the restrictive laws in July, 2018, they had to rescind them in August 2018 as unlawful. 

.: manufacturing or distributing illegal substances, storing, manufacturing, or selling explosives, flammables, or other inherently dangerous substances, chemicals, or unlawful devices)."

82.035 Remedy for unlawful detention by a transient occupant of residential property; recovery of transient occupant’s personal belongings.—(1) As used in this section, the term “transient occupant” means a person whose residency in real property intended for residential use has occurred for a brief length of time, is not pursuant to a lease, and whose occupancy was intended as transient in nature.