Seeking guidance from a financial adviser is a common occurrence in the world of individual investing. These financial advisers are supposed to not only provide their experienced input, but should also respect the wishes of the investor when it comes to taking risky moves. Sadly, some of these advisers still make unsuitable investments that leave their New York clients financially devastated. Even worse, many do not have insurance to cover these losses.

Larger registered investment advisory firms -- RIAs -- purchase insurance for "errors and omissions." This insurance coverage pays out to the RIA's investment clients when the advisers make unsuitable investments, mistakes or otherwise unwise decisions. RIAs are not required to carry this insurance, though. This means that many individual investors could be left without protection should their adviser make a bad move.

Smaller and even mid-size RIAs frequently decide to skip purchasing errors and omissions insurance in order to save money. When an adviser makes an unsuitable investment the firm may not face any type of repercussions and the client investor will be out of their money. This is true even if an adviser took actions that the client explicitly asked the adviser not too.

All it takes is a single unsuitable investment for an investor in New York to lose his or her life savings. This can be an unexpected and devastating blow to those who thought they were doing the best thing to build their wealth and establish a sense of financial security. However, it does not mean that they are out of options. Speaking with an experienced attorney could help clarify which actions are appropriate to take in the aftermath of unsuitable investments.

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