Why You Should Consider CoverPlus Extra

When you’re self-employed or earning a shareholder salary, ACC (Accident Compensation Corporation) cover works a little differently than it does for employees. It’s important to understand how your cover is calculated — and why upgrading to CoverPlus Extra can give you greater certainty and peace of mind.

How ACC Works for the Self-Employed

• Standard ACC cover is based on your last year’s earnings reported to IRD.
• If you’re injured and can’t work, ACC pays you up to 80% of your declared income.
• The problem: if your income fluctuates (as it often does for business owners), your compensation may be much lower than you expect.
• You may also face delays proving your income to ACC before they pay out.

What is CoverPlus Extra?

CoverPlus Extra (CPX) is an optional ACC policy designed specifically for the self-employed and shareholder-employees. Instead of ACC estimating your income, you agree on a fixed level of cover in advance.

Key Benefits:

✅ Guaranteed agreed amount – You choose the cover (e.g., $80,000) and if you can’t work due to injury, ACC pays 100% of that agreed amount (not just 80%).
✅ No need to prove lost income – Payments are automatic, saving time and stress.
✅ Certainty for planning – Even if your business income drops, your cover stays the same.
✅ Tax deductible – Premiums are generally tax-deductible as a business expense.
✅ GST claimable – If you’re GST registered, you can claim the GST portion back.

Example Comparison

Let’s compare how Standard ACC vs CoverPlus Extra works:

Real-Life Example

• Sarah runs her own consultancy. Last year she earned $80,000, but this year, after investing back into her business, her taxable income dropped to $50,000.
• If she got injured, standard ACC would only pay her $40,000 (80% of $50,000).
• With CoverPlus Extra set at $80,000, she’d receive the full $80,000 agreed — giving her financial security while she recovers.

Why It Matters

As a business owner, your income may not always be consistent — but your bills and living costs are. By taking out CoverPlus Extra, you:

• Lock in certainty about your income protection.
• Avoid stressful paperwork during recovery.
• Ensure your family and business finances are looked after.

Final Word

If you’re self-employed or on a shareholder salary, relying on standard ACC cover can leave you exposed. CoverPlus Extra gives you guaranteed income protection, tax benefits, and peace of mind when you need it most.

👉 Talk to us or your insurance advisor about reviewing your ACC cover and whether CoverPlus Extra is the right fit for your situation.