No they don't. The average person's insurance doesn't cover bad stock performance, the only insurance against bad trades is adjusting the beta of your portfoli

No they don't. The average person's insurance doesn't cover bad stock performance, the only insurance against bad trades is adjusting the beta of your portfolio. What happens when a main street investor gets hit by a crash, depending on how bad the crash is, is that they lose their savings. If they actually end up with debt that they can't repay, they may lose their house (if they own one), declare bankruptcy, and have their credit ruined for several years.