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What Type of Accounts Are Not Insured?

 When it comes to protecting your assets—whether personal or business-related—insurance plays a vital role. But not all accounts or situations are covered under standard insurance policies. At Auswide Insurance Brokers, we believe that understanding what isn’t covered is just as important as knowing what is. This can help you avoid costly surprises and ensure you have the right protection in place.

If you've ever searched for commercial insurance brokers near me, you're likely already aware of how complex insurance can be. So let’s clear up some of that confusion by answering a common question: What types of accounts are not insured?



1. Uninsured Bank Accounts

Let’s start with the basics. In Australia, banks, credit unions, and building societies are typically covered under the Financial Claims Scheme (FCS), which protects depositors if a financial institution fails. However, this scheme has limits and does not cover every account.

Not insured under the FCS:

  • Deposits over $250,000 per account holder, per institution

  • Accounts held with foreign banks not incorporated in Australia

  • Investments like stocks, managed funds, or crypto held outside banking institutions

Why it matters: If you’re a business owner holding large deposits or investing through various financial platforms, you could be at risk without additional coverage.

2. Non-Compliant Business Activities

Commercial insurance policies are designed with specific coverage boundaries. If your business engages in activities not disclosed to your insurer or excluded in your policy, your accounts related to those activities may not be insured.

Examples include:

  • Operating in high-risk industries without specialist coverage

  • Expanding into new services or products without updating your policy

  • Using personal vehicles for business without declaring them

Tip: Always keep your insurance broker informed of changes to your business. As experienced commercial insurance brokers near you, we can help you reassess your coverage as your business evolves.

3. Illegal Activities

This may seem obvious, but it’s often overlooked. Any account or asset related to illegal operations—even if the illegality is unintentional—is not insurable.

Examples:

  • Revenue from non-compliant products or services (e.g. unlicensed goods)

  • Income from fraudulent or deceptive practices

  • Cyber accounts used in phishing or unauthorised data collection

If you’re unsure whether certain practices could void your policy, it's best to seek advice. At Auswide Insurance Brokers, we’ll help you understand the fine print.

4. Unregistered or Underinsured Assets

If a business account is tied to an unregistered asset, such as a vehicle, machinery, or intellectual property, it may not be covered under your existing insurance plan.

Also, underinsurance is a growing issue. If your policy doesn’t adequately reflect the current value of your assets, you could face significant out-of-pocket expenses when making a claim.

Common culprits:

  • Outdated property valuations

  • Equipment not listed in policy schedules

  • Intellectual property not specifically covered

5. Personal Accounts Used for Business Purposes

Many small business owners blur the lines between personal and business accounts. Unfortunately, insurance doesn’t follow suit. If you’re using a personal account to handle business transactions or assets, it may not be protected under a personal or commercial policy.

Recommendation: Keep accounts separate and properly documented. If you’re unsure where you stand, search for commercial insurance brokers near me and reach out to our team at Auswide Insurance Brokers for a full coverage review.



Final Thoughts

Insurance is not one-size-fits-all. By understanding what types of accounts are not insured, you can take proactive steps to secure your financial well-being. Whether you’re running a small local business or managing a larger operation, it’s essential to work with a broker who understands your needs.

Looking for trusted commercial insurance brokers near me?
 Auswide Insurance Brokers is here to help. Our experienced team can tailor solutions to protect your assets, your income, and your peace of mind.

Contact Auswide Insurance Brokers today to schedule a free consultation and review your current insurance coverage - https://auswideinsurance.com.au/contact-us/

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