You or your insurance carrier can sue anyone for liability tied to negligence. Small claims for small stuff, general tort claim for bigger.
Whether you collect or not who knows.
Say a resident left water running and flooded units. They were negligent. Your insurance would or should pursue recovery.
A kitchen fire might be harder to prove negligence.
We require renters insurance that lists us as an additional insured. If that insurance is cancelled, we put them on a master plan with coverage just to protect our property, no personal
coverage. Premium is added to monthly rent.