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.

On this page

    Our standard cover – CoverPlus

    If you're self-employed or a contractor you'll automatically be placed 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 (CPX)

    CoverPlus Extra (CPX) 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  cover amount and option. 

    CPX 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 cover amount 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. CPX 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. 

    CoverPlus Extra has two cover options 

    Full compensation 

    With this option we’ll pay 100% of the agreed cover minus tax, divided into weekly payments until you can get back to full-time work. This provides greater flexibility and certainty. 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. 

    Lower level weekly compensation (LLWC) 

    In return for a slightly lower levy, this option provides weekly compensation payments which reduces when returning to part-time work. For example, if your cover is $52,000 per year, we’ll pay 100% of this until you start working part-time. If you return to work for 50% of your normal working hours, your compensation will reduce by 50%. The compensation stops when working at least 30 hours per week.

    To find out if CPX 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. Certain amounts may require approval. 

    If you're not sure what level of cover works best, we recommend you seek independent financial advice..

    Phone 0800 222 776
    Email cpx@acc.co.nz

    Applying for CoverPlus Extra (CPX)

    You can apply for CPX 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.

    If you’rself-employed, you can apply for CPX through MyACC for Business.  

    Login to MyACC for Business  

    If you’re a non-PAYE shareholder, you can apply for CPX through our online form.

    Apply for CoverPlus Extra online

    Confirming your cover

    Once we've processed your application we'll send you a policy offer which you must accept. If you have a physical policy offer you’ll need to sign and return this to us.

    Your policy will begin on the date we receive confirmation youve accepted your offer, or a chosen date in the future if you’ve applied in advance.

    How invoicing on CoverPlus Extra (CPX) 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 CPX 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 CPX is an opt-in product, it’s important that we receive payment on or before your invoice due date. 

    Non-payment will result in your CPX policy being cancelled and you’ll revert to standard cover. If this happens, you can re-apply for CPX, 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 CPX 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 CPX 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 CPX.

    Last published: 1 March 2021