Types of cover for self-employed

If you're self-employed or a contractor you have two options for your ACC cover, either our standard CoverPlus or CoverPlus Extra.

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    Our standard cover – CoverPlus

    If you're self-employed or a contractor you'll automatically be on CoverPlus. If you've had an accident and can't work, we’ll pay your compensation at up to 80% of your taxable income based on the most recently completed financial year. For example, if you earn $52,000 per year on CoverPlus you'd get up to 80% of that each week, which is $800 before tax.

    Weekly compensation payments start a week after your injury, and we’ll also help cover the cost of your treatment and rehabilitation.

    You can calculate the levies you'll pay on CoverPlus:

    Calculating your levy

    CoverPlus Extra

    CoverPlus Extra is an optional cover product that allows you to choose how much of your income you want to be covered if you have an accident and can’t work. We'll pay compensation based on your nominated level of cover and cover option.

    If you choose full compensation, we’ll pay 100% of the agreed cover minus tax, divided into weekly payments until you can get back to full-time work. For example,  if your cover is for $52,000 per year, we’ll pay 100% of that amount each week, which is $1,000 before tax.

    If you choose to have a lower level of compensation, this will allow you to have a cheaper levy. Should you have an accident and are unable to work, your weekly compensation will decrease as you gradually return to work, until you're working at least 30 hours per week.

    CoverPlus Extra is especially suited to those who:

    • have fluctuating income, either yearly or seasonal as you’ll know exactly how much we’ll pay
    • want to apply for more or less cover than your actual income
    • are newly self-employed with no earnings history and want assurances around your cover.

    Benefits include:

    • Your levy invoices are predictable as we calculate them by using the level of cover you nominated and agreed with us. So, no surprises at invoice time
    • Like our standard cover, the injury that leads to time off work doesn’t have to be work-related. CoverPlus Extra covers injuries that happen anywhere, eg at home, on the road, during sports, etc
    • More control over how much you pay in levies as you can choose to pay a lower levy in return for lower weekly compensation or a higher levy and receive higher weekly compensation.

    To find out if this is the best option for you, you can calculate your levies:

    Use the calculator to calculate your levies

    Choosing a level of cover for CoverPlus Extra

    You can apply for cover for any amount of income between $29,453 and $104,729. We’ll work together to determine your cover amount.

    If you're not sure what level of cover works best for you, talk to a third party for advice. Or you can talk to us.

    Phone: 0508 426 837
    Email: cpx@acc.co.nz

    Applying for CoverPlus Extra

    You can apply for CoverPlus Extra if you’re:

    • self-employed and working:
      • full time (more than 30 hours per week on average)
      • part time (less than 30 hours per week on average) and have earnings above the CPX minimum for the current year
    • a non-PAYE shareholder, ie you don’t receive PAYE deducted earnings from a company you’re a shareholder of as you pay levies through PAYE.

    Use our online form to apply for CoverPlus Extra.

    Note: To complete the form, use one of the following browsers - Chrome, Firefox, or Edge.

    Apply for CoverPlus Extra online

    Confirming your cover

    Once we've processed your application we'll post you a policy acceptance form, which you must sign and return to us.

    We’ll use the date we receive the signed acceptance form as the start date of your policy, and then send you an invoice.

    How invoicing on CoverPlus Extra works

    You’ll receive your first invoice once your cover is confirmed. Your policy will renew each year and you’ll pay an invoice for the year ahead.

    We’ll send your renewal details to you yearly, to ensure you have a chance to check everything is still correct before you receive your CoverPlus Extra invoice.

    Each year you’ll also receive a separate invoice for your Working Safer levy when we receive your actual income information from Inland Revenue. This is a separate invoice as it is outside of the agreed level of cover for us.

    As CoverPlus Extra is an opt-in product, it’s important that we received payment on or before your invoice due date.

    Non-payment will result in your CoverPlus Extra policy being cancelled and you’ll revert to standard cover. If this happens, you can re-apply for CoverPlus Extra, however, you’ll need to go through the full application process again.

    Learn more about ways to pay your invoice:

    Ways to pay levies

    Note: If you're only on CoverPlus Extra for parts of the financial year, you’ll have cover from our standard levy product for any other period. We base this standard cover on the earnings you file with Inland Revenue. Once CoverPlus Extra is in place, we’ll adjust your earnings to calculate your standard cover levy. We base this on the period of time you’re on CoverPlus Extra.

    Last published: 2 February 2021