Is ACC Cover Plus Extra Right For You?

What is Cover Plus Extra

Cover Plus Extra is ACC's answer to many of the problems that face the self-employed. These problems are generally around levies and claims. I'm sure you'll have heard many complaints over the years from friends and family. Cover Plus Extra is not something that many people know about and even fewer think about. However it can make a huge difference when it comes to paying levies or making a claim. So is Cover Plus Extra right for you?

Find out more from the ACC website.

Who can apply for Cover Plus Extra?

ACC Cover Plus Extra is available for the self-employed or contractors providing that they aren't on a PAYE salary. You might know this by the term 'taking drawings'. If your company has more than one director then Cover Plus Extra is an option. As long as directors aren't taking a PAYE salary of course.

Reasons to switch to Cover Plus Extra

If any of these circumstances relate to you, then you should consider reaching out to us for a consultation.

• You have a fluctuating income: Your income changes week to week or season to season.
• You've just started a new business: New businesses are unable to prove earnings making claims difficult.
• Taxable income is different from earnings: After expenses, taxable income can be significantly lower than actual earnings.
• Share holders duties don't reflect the business activities: If one director is doing the books in a plumbing company both will pay levy as plumbers.
• There is no loss of income after an accident: If your earnings don't change after an injury then there is no loss and no claim.
• If you want control over the level of cover: Increasing or reducing the amount of cover will impact the levy paid.

The Advantages of switching

You think that you qualify for Cover Plus Extra, so what are the advantages for you and your business.

• You'll receive 100% of the cover at claim time: Not 80% of proven taxable income, it is an agreed value policy so you will receive it all.
• There is no abatement of claims: You will not have a claim reduced if you work a few hours in your business. Calling clients, staff, paying invoices and answering emails will be OK.
• Cover Plus Extra keeps your business income safe: ACC won’t deduct residual business income from your claim.
• Protection against fluctuating earnings: Even if you have an accident off-season, after a dry spell, or following a long holiday, your cover stays the same because you’ve agreed the amount upfront.
• You can balance ACC with personal insurances: Taking control of ACC lets you align it with income protection and life cover.
• ACC can cover things personal insurance wont: Dangerous past-times are something that ACC will cover but private insurance wont.
• Directors can change their Classification Unit: Any director not involved in the main duties of the business can switch to a different CU This can save thousands a year.
• No proof of income needed at claim time: With agreed value cover, you only need to prove the injury—not your income.
• No need to prove earnings under $80,000: To set up Cover Plus Extra there is no need to prove income to set cover up to $80,000.
• Set cover to match your actual income, not taxable income: Prove your turnover and request cover for it.

Are there any drawbacks?

Changing your cover increases your risk. When you reduce cover to cut premiums, you lose protection if you get injured or die in an accident. That choice can cost your family millions of dollars over the years.

ACC Cover Plus Extra is paid in advance. When you switch, you’ll likely pay last year’s Cover Plus invoice along with next year’s Cover Plus Extra invoice

If you don’t pay the invoice within 14 days of renewal, ACC automatically reverts you to Cover Plus, and you must re-apply to switch back.

Remember: Cover Plus Extra does not cover pre-existing conditions. If there was a claim in the past and there is a recurrence of the claim in the future any claim will be based on the ACC position at the time of the original claim.

Like all insurance, switching to ACC Cover Plus Extra requires careful consideration of your circumstances. That’s why speaking to an insurance expert before deciding is ideal. We recomending getting in touch with the expert at Cover Yours. We specialise in understanding your ACC options and how they work with other personal insurances.

Cover Yours Ltd (FSP769531) and Marc Hamilton (FSP306046) are registered Financial Service Providers and you can search the register here. Marc Hamilton is a member of the FSCL Disputes Resolution Scheme. Cover Yours Ltd's disclosures can be found here or by emailing hello@coveryours.co.nz