Insurance & Business Entities 101

[Aaron J.]

What is the industry standard insurance protection to have when owning just one rental? I understand that homeowners insurance is mandatory for any home whether owner occupied or non owner occupied, but what about additional insurance? Insurance that protects you from a litigious tenant. What do landlords typically have in place with regards to insurance? 

Also, what do landlords typically do with regards to business entities? What is recommended? What do people do when they first start off? Sole Proprietorship? Limited Liability Corporation? Partnership? 

My goal is to eliminate as much risk as possible but still be in the green when all expenses are paid of course.