ACC is something which is at the back of everyone’s minds that is until we get injured. Everyone (or almost everyone) know what ACC is, its insurance that covers you for accidents.
However, like any insurance ACC has different policies which provide different levels of cover. Below we explore how ACC works and what cover is right for you.
If you are an employer you automatically get covered under the workplace cover, this is the standard cover for employers.
The standard workplace cover covers you for:
- up to 80% of your employee’s salary while they can’t work
- subsidised medical care for your staff’s work-related injuries
- injury prevention schemes
What you pay for this workplace cover is dependant on the amount of wages you pay. Inland Revenue provides ACC with a summary of your payroll information and ACC uses this to calculate your levy and invoice you. The levy also depends on your industry classification so make sure this is correct with the IRD and ACC as more risky industries tend to have higher ACC levy rates.
Self-Employed (Sole-Traders, Contractors)
ACC CoverPlus is the default option for self-employed or a contractor. You are eligible for this cover as soon as you start your business and you are automatically covered.
ACC CoverPlus covers you for:
- up to 80% of your taxable income based on the most recently completed financial year.
- pays towards the cost of your treatment and rehabilitation.
- Compensation based on actual loss of earnings
Note: ACC CoverPlus does not pay you for the first week after your injury.
ACC CoverPlus Extra is available for Self-Employed and non-PAYE shareholder employees. You have to apply for this cover it is subject to underwriting approval.
ACC CoverPlus Extra covers you for:
- 100% of the agreed amount
Both CoverPlus and CoverPlus Extra cover you for:
- Fully paid emergency care and ambulance service
- Non-urgent surgery
- Payment towards medical fees including GP and physiotherapy
- Support services such as home help and childcare
- Support services to help your client return to work
- Lump-sum payments for permanent impairment
- Fatal injuries – cover for dependants and other death benefits
When does ACC invoice you?
- Employers and shareholder employees – every year based on your liable payroll filed with Inland Revenue. This invoice includes both your final levy and a provisional levy
- Self-employed and Contractors – this is usually after you file your income tax return
- New to Business – your first invoice will be triggered after you file your first tax return. This is usually in the second year of business.