The recent actions of errors and omissions insurance carriers should serve as a major red flag to investors. Many of these carriers are refusing to issue coverage for sales of certain alternative investments. In other words, these carriers have determined that the risk of loss associated with the sale of certain alternative investments is too great to insure. If the risk of loss associated with sales of alternative investments is too great for insurance carriers, one would think that the risk of loss would be too great for all but the most speculative investors.