Limiting Liability

[Jeffrey Evilsizor]

I am a new investor.  I have two houses in the Phoenix market under rehab for fix/flips in separate LLCs.  I live in Kansas City. I have a trusted friend who is overseeing the rehabs that gives me confidence to invest out of state.  

My friend is not licensed, nor insured - but he knows construction and is sub-contracting out the work to reputable laborers from his personal network, some also uninsured.  

I had planned on picking up some general liability insurance for the LLC.

 Here are the insurance agents thoughts... 

"First off, if you are acting as General Contractor in AZ, you are looking at a minimum of $5k in premiums for General Liability. AZ has some very stringent construction defect suits and is the hardest state to procure GL for a GC.

So you are taking an extremely high risk by working with uninsured contractors. Not only that your money is on the line for 8 years because construction activities fall under the Statute of repose not Statute of limitations."

What are my options?

5K per year per LLC for General Liability insurance as the General Contractor even though I may or may not be able to pull off more flips this year?

What else don't I know that I need to know?

None of these subs work exclusively for my LLC and they are not my employees. Do I also have to get workers comp?

Does dissolving the LLC after sale limit my liability?

Thanks for the help.   I really can't afford any exposure that would wipe out these investments.  My wife would not be appreciative.