You probably can't call it "insurance" in your state, but you could call it "Cancellation Protection" or similar. 

You can decide to pay him weekly on progressed work, but that’s just a headache, maybe milestone is best protection, or at least bldg inspection sign offs if you have that.

This should always be covered by your business/landlord policy as an investor, and it's most commonly called business income protection or loss of rents protection.  

As long as you maintain adequate insurance it is very rare to receive any benefit, tax asset protection or otherwise, from establishing LLCs.

and only after you covered the "other" aspects of risk management (insurance, umbrella insurance, proper property management, etc.).Here is something to help assess the need for asset protection, and what to implement - my Asset Protection Decision Diagram : https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-decision-diagram Asset Protection Onion Diagram - what, when and at what cost one should implement in terms of asset protection - https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-onion-diagram-v2 What is needed for a complete asset protection OR the domains that need to be intersected to find asset protection

Also a stance to not over look cash flow, tax protection, or debt pay down.

Folks usually get an LLC in this situation for liability protection or anonymity.

Specifically one that does asset protection or estate planning.

. - https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-structuresBonus: What is needed for a complete asset protection OR the domains that need to be intersected to find asset protection. - https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-spectrum-diagramAnd if all that didn't get you utterly confused, let me add to it - since AssPro is not cheap, I spent numerous hours researching from multiple sources the whole LLC question and asset protection matter and all the rabbit holes it opens.

@Deba Douglas Not a lawyer, nor CPA, your due dilligence required, but here is my 2¢:The LLC gives you liability protection or litigation insurance, which complements regular insurance (which doesn't cover you in all scenarios and whatever limits).