Beany is not allowed to act as your agent with ACC, but here is some general information about the cover options.
CoverPlus: This is the standard cover.
- If you're self-employed or a contractor you'll automatically be on Cover plus. If you've had an accident and can't work, they will pay compensation at up to 80% of your taxable income based on the most recently completed financial year.
- If that previous year was a bad year and your wages were unusually low, then your compensation will be based on that amount regardless of what you were earning just prior to your accident.
- But what happens if you don’t have prior years financial information? It is in your first year of business? Well, you will get the minimum weekly compensation which is $566.40 (equal to 80% of the adult minimum wage of $708.00 for a forty-hour week).
Cover Plus Extra
- Is an optional cover product that allows you to choose how much of your income you want covered if you have an accident and can’t work. Compensation is paid out at 100% of the amount you have agreed in advance with ACC.
- Levies are pre-arranged so you always know how much you are paying
- CoverPlus Extra is especially suited to those who those with fluctuating income, either yearly or seasonal income and those who are newly self-employed with no earnings history and want assurances around your cover
It is important to remember that ACC only covers accidental injury, not sickness or age-related injuries. Research in NZ has shown that illness is the leading cause of loss of income and it is always good to have this discussion with clients and ensure they understand this and may wish to discuss things further with an insurance broker.
- If a your levy is over $575 it can be spread over 6 months without penalties, interest or fees. Or it can be spread it over 10 months, with an admin fee of 5.4%. A better option than most overdraft or credit card rates. Longer term options are available, but this needs to be specifically requested.
Check out ACC's website for additional information.