In this short article, we’re touching on what ACC actually covers come claim time and how best to use ACC to your advantage.
ACC will cover any personal injury that’s resulted from an accident, or a condition that comes on gradually relating to your work. It doesn’t however cover illness. If you to get sick and can’t work you will not be covered by ACC. We’ll look at how best to attack this a little further on.
If you happen to have an accident and can’t work, then ACC will pay you 80% of your taxable income. The important part here is that it’s 80% of your taxable income – that is after all the expenses that have gone through your business. If you’ve reduced your income considerably, you’ve also reduced your potential ACC payout.
For the self-employed, it can also be very difficult to prove what your taxable income should be. For example, if you’re off work during your busiest time of the year, you may be paid out based on your average earnings for the year. Alternatively, if you’ve just setup in business it can be difficult to prove you’ve lost any income at all.
ACC recognise the difficulties faced by the self-employed. Believe it or not ACC are generally quite helpful and offer Cover Plus Extra to solve the problem. ACC Cover Plus Extra gives you certainty of payout come claim time, and also certainty about what your premiums will be.
One option available would be “locking in” a pre-agreed amount with ACC and paying a lower premium based off of this. Locking in the lowest amount possible of $26,000 per annum will save you money in premiums, especially if you are in a high risk industry.
With the savings in ACC premiums, you would be able to buy personal insurance cover which will not only cover you for accidents, but illness and a raft of other situations as well.
On this note, it is important that you have the right cover when it comes to ACC and your personal insurance. Especially as a business owner, you need to be asking yourself, “How long can I go without working?” Another important question would be “How long can my employees keep their jobs without me at work?”
By having an appropriate level of cover, you are not only covering yourself for personal expenses, but you may be able to use part of this money to employ someone part time to work in your business while you are temporarily out of action.
If you would like to discuss this further, get in touch and we will be more than happy to put you through to an experienced broker which will cost and obligation free.