If you are self-employed in New Zealand and suffer a workplace injury you are automatically covered for insurance purposes by ACC under the ACC CoverPlus scheme.
As the default scheme covering work place injury for the self employed, ACC CoverPlus pays up to 80% of the previous year’s earnings (limits and conditions apply), the payments are subject to the claimant proving their loss of earnings figure.
Under ACC CoverPlus insurance payments received from ACC are reduced if the business continues to generate income during the time off work, or the claimant returns to work on a part-time basis.
An alternative to ACC CoverPlus for the self-employed is ACC CoverPlus Extra.
ACC CoverPlus Extra provides guaranteed lost earnings cover for the self-employed based on a pre-agreed fixed level of income.
Under ACC CoverPlus Extra if a self employed person is injured and required to take time off work they are guaranteed to receive the level of income pre-agreed with ACC.
The circumstances particularly suited to ACC CoverPlus Extra are where:
- Earnings fluctuate from year to year;
- You’re commencing business and have no earnings history;
- Personal income is not an accurate indication of your earnings capacity because of income splitting or you have taken advantage of options to reduce your tax.
Unlike ACC CoverPlus, insurance payments received under ACC CoverPlus Extra are not reduced if the business continues to generate income during the time off work, or the claimant returns to work on a part-time basis. Nor are claims subject to proving loss of earnings.
As with ACC CoverPlus, the self employed are able to claim a deduction for ACC CoverPlus Extra premiums.
ACC CoverPlus Extra is also available for non-PAYE shareholder employees (subject to certain conditions).
Contact us if you would like to discuss your ACC options further.