For example, if an injury occurred at the tenant’s business prior to termination, and the injured person sues the tenant and landlord, the landlord should be able to still seek attorney’s fees from the tenant if it is clear that the indemnification provision survived.

If, heaven forbid, a tenant or guest gets seriously injured on one of your properties and decides to sue you for damages, then any and all of your assets (both personal assets and investment assets) are exposed to this lawsuit if you are not using an LLC or similar tools for asset protection.

It’s essential to keep any potential legal or financial risks from your investment property separate from your personal assets.For example, if someone were to get injured on your property — even if they were trespassing — you could still be held responsible.

All it takes is one contractor working on your rehab to get severely injured or disabled, or worse, die, while working on your property for you to lose your life's work to one lawsuit.As to taxes, there are a couple of issues here.

What if a tenant or other person were injured on the property and they sued you?

If someone injures themselves and sues, they will be suing the LLC and not you personally.

I have never had a situation where it's come up with a client except for one case where a tenant drove a car into a building and one of us was minorly injured on site.

And you as the owner are injured, financially. 

If someone were to get injured, general liability insurance would help cover medical bills, legal costs, and potential settlements.Another crucial policy is workers' compensation insurance, especially if you hire employees or contractors to work on your fix-and-flip project.

If you only have a homeowners policy, and something happens like a fire or a guest gets injured, and the insurance company finds out you're renting out the house, you're in deep trouble.