It’s reassuring to know that if your self-employed and non-PAYE shareholder-employee clients have ACC CoverPlus Extra and are injured, they not only have access to medical treatment and rehabilitation support but they also know exactly how much lost earnings compensation they may receive.
ACC CoverPlus Extra at a glance
- Access to an agreed level of compensation for lost earnings at 100% of the guaranteed level of cover
- Minimum and maximum levels of cover apply
- No proof of loss of earnings required at claim time, as cover has been agreed
- Provides 24-hour no-fault cover for work-related and non-work related personal injuries
- Access to the full range of medical treatment and rehabilitation benefits
- Two options are available: Standard cover, and Lower Levels of Weekly Compensation (LLWC)
- Clients must apply for cover, and cover is subject to acceptance
- Underwriting criteria applies.
ACC CoverPlus Extra cover options
Standard cover
Standard cover maintains the weekly payment of an agreed amount of compensation until your client is deemed fully fit for full-time work, or they are rehabilitated. A unique feature of this cover option is that, even if your client’s business continues to generate income, their weekly payment will remain at the pre-agreed level.
Lower levels of weekly compensation (LLWC)
LLWC gives your client the opportunity to pay a slightly lower levy in return for reducing levels of lost earnings compensation payable in the event of an injury.
They can still negotiate how much compensation they may receive; however, if their business continues to receive income during their time off work or they return to work on a part-time basis, their weekly payment will be reduced.
Is ACC CoverPlus Extra right for my client?
In most circumstances, ACC CoverPlus Extra provides the right level of cover for your client, particularly if:
- their earnings fluctuate from year to year (eg farmers, real estate agents, contractors)
- their earnings status has changed (eg from part-time to full-time)
- they are self-employed and new to business and may otherwise only be entitled to the minimum cover under ACC CoverPlus
- they are a shareholder-employees and new to business and so may have no entitlement to weekly benefits
- their personal income is not an accurate indication of their earnings capacity because they have split income with a partner or spouse, or have taken advantage of options to reduce their tax
- their business may still generate income if they’re injured.
Key benefits of ACC CoverPlus Extra
Key benefit |
Why it’s important |
|---|---|
Lost earnings compensation based on 100% of the agreed level of compensation cover |
It gives your client the peace of mind of knowing how much lost earnings compensation they may receive, allowing them to plan ahead with confidence |
Proof of loss of earnings isn’t required at claim time |
Less paperwork and faster payments |
Cover level can be tailored to suit your client’s personal circumstances |
Helps your client choose the right cover to meet the needs of their business |
No reduction in lost earnings compensation, even in the event of partial return to work or receipt of business-generated income (except if the LLWC option is taken) |
Your client can keep their business going by getting replacement labour to help them, and can go back to work part-time and still receive their full entitlement |
Eligibility for ACC CoverPlus Extra
All full-time self-employed people and non-PAYE shareholder-employees who work more than 30 hours per week are eligible for ACC CoverPlus Extra (standard and LLWC).
If your client works part-time and their earnings exceed the ACC CoverPlus Extra minimum, they are eligible for the ACC CoverPlus Extra standard cover option.
Part-time self-employed people are not eligible for LLWC. Part-time is where your client works less than an average of 30 hours per week.
Entitlements under ACC CoverPlus Extra
Under ACC CoverPlus Extra, your client has access to all the normal cover and entitlements of ACC CoverPlus. Subsequently, some or all of the following entitlements may be payable depending on the nature of your client’s injury and their individual needs. See What support can I get? for more information on:
- treatment
- managing at home
- your work situation
- getting a child back to school
- getting to places you need to be
- long-term injuries
- permanent impairment
- when someone dies as a result of an injury
- compensation for lost earnings (based on 100% of the agreed level of cover).
ACC CoverPlus Extra levies
Your self-employed clients pay levies for their personal injury cover under ACC CoverPlus Extra. You can calculate their levy using our online levy calculators.
For more information, see the Levies and invoicing section.
Applying for ACC CoverPlus Extra
Your client can apply for ACC CoverPlus Extra at any time. The application process is relatively straightforward, particularly if your client’s cover requirements fall within the Underwriting guidelines.
For more information, see Applying for ACC CoverPlus Extra.
ACC CoverPlus Extra policy requirements
The level of cover your client nominates is subject to an estimate of:
- their income
- the cost of any required replacement labour. See Replacement Labour Costs (for ACC CoverPlus Extra) (PDF 37K)
- any other considerations that may be relevant.
If the level of cover that your client is applying for is outside the Underwriting guidelines, we’ll need to obtain further information from your client so that we can negotiate and agree an appropriate level of cover with them (or with you if you have your client’s approval to act on their behalf).
When your client takes up ACC CoverPlus Extra, the new policy will cover new injuries only. ACC CoverPlus Extra cover cannot be backdated.
Invoicing for ACC CoverPlus Extra
Once your client has accepted the offer, they will receive one invoice based on the level of cover from the inception of ACC CoverPlus Extra to 31 March, and thereafter one invoice from 1 April to 31 March. Your client will also receive an invoice for the residual portion of the Work Account levy and Health and Safety in Employment Levy separately.
For more information, see Invoicing.
Policy renewals
All ACC CoverPlus Extra policies expire on 31March and renew on 1April each year. Your client will be sent a renewal offer before their policy expires. If at this stage they want to make any changes to their policy, they (or you if you’re registered to act on your client’s behalf) can request them by completing the ACC4819 Changes to your business information - self-employed (PDF 105K).
If no changes are required, the policy will automatically renew.
If your client wishes to cancel the ACC CoverPlus Extra cover, your clients ACC cover will revert back to ACC CoverPlus or ACC Workplace Cover as appropriate.
Health and safety discount programmes
We offer incentives to self-employed people under a number of health and safety discount programmes. In return for satisfying certain criteria under these programmes, your client may be eligible for discounts on their ACC levies.
For more information, see:
ACC Workplace Safety Discounts programme
ACC Workplace Safety Management programme
Last updated: 23 June 2010