Do you have the right ACC cover?
For business owners, there are many other reasons that could potentially stop them being able to work and
affect the business and overall cashflow.
Findex Do you have the right ACC cover for your business
The Accident Compensation Corporation
(ACC) is tasked with assessing and collecting levies from all employers and employees (including shareholderemployees) to fund work focused on ensuring prevention, care and recovery from workplace injuries.
While most levy payers have limited options to vary or make savings on their levies, business owners who are paid as a shareholder employee or who are sole traders or partners in a partnership do have options.
ACC offers two options for business owners: ACC Standard Cover and ACC Coverplus Extra.
Some of the key differences in the two options as detailed on the ACC website:
ACC Standard Cover You are eligible for lost earnings compensation as soon as the business starts. Financial assessment is not applicable. h The Standard ACC cover is based on actual liable earnings. Weekly compensation entitlement when you are injured pays up to 80 per cent of the previous year’s liable earnings (limits and conditions apply). This may be reduced if the business continues to generate income or there is a partial return to work.
ACC CoverPlus Extra
You must apply for this cover and the cover must be in place before the accident occurs. Financial assessment is required to assess the appropriate amount of cover and is subject to approval. It covers an agreed amount, and you can opt for lower levels of weekly compensation (LLWC). Weekly compensation entitlements when injured are based on 100 per cent of the agreed amount until you are fit to return to full-time work. This doesn’t change depending on the income generated by the business or a partial return to work (unless LLWC).
The change from Standard Cover to CoverPlus Extra can potentially offer some levysaving and certainty at the time of claim, as well as allowing for altering of the level of cover.
There are other differences between the covers, such as changes to any accidental death entitlements, so before committing to a scheme change you need to ensure you understand and discuss with your adviser how your claim entitlements will vary.
It is also important to remember ACC only provides cover for injuries. For business owners, there are many other reasons that could potentially stop them being able to work and affect the business and overall cashflow. Planning the right insurance with your risk adviser can help ensure your ACC cover works in conjunction with the rest of your business and personal insurances.