If you’re self-employed, you might assume that because you pay ACC levies, you’ll be well-covered if you ever need weekly compensation. But many business owners are surprised by how much—or how little—they actually receive after an accident.
How ACC Weekly Compensation Works
When you’re self-employed or a contractor, ACC automatically puts you on a plan called CoverPlus. If you can’t work due to an injury, ACC pays you up to 80% of your taxable income, based on your last completed financial year.
For example, if you earned $52,000 last year, your weekly compensation would be up to $800 before tax. Payments start a week after your injury, and ACC also helps cover treatment and rehabilitation costs.
The Challenge for Self-Employed People
There’s never a good time to have an accident, but for business owners, time off work can be financially stressful. If your income fluctuates or you have high business costs that continue even when you're not working, ACC’s standard CoverPlus may not provide the security you need.
CoverPlus Extra – A Smarter Option?
ACC offers an alternative: CoverPlus Extra. This lets you agree on a set level of cover with ACC, meaning if you’re injured, you receive a pre-determined payment—regardless of how much your business was earning at the time.
This can be a game-changer if:
- Your income varies from year to year
- You have fixed expenses that continue even when you can’t work
- You want certainty in case of an accident
Get the Right Cover for Your Business
Understanding ACC’s compensation options can make a big difference if you ever need to make a claim. If you’re self-employed, it’s worth checking whether CoverPlus Extra is a better fit for you.Need help figuring it all out? Contact us.
