ACC Isn’t Enough - What Business Owners Need Instead
If you’re self-employed or running a business in New Zealand, you’re automatically enrolled in ACC — and most people just leave it at that.
But here’s the thing: the standard/default ACC setup is rarely the most cost-effective or protective option, especially if you’re a business owner who can’t afford to be off work!
Here’s what you need to know…
THE ACC TRAP: IT ONLY COVERS ACCIDENTS
ACC plays a vital role in supporting New Zealanders injured in accidents — but that’s where its cover ends. ACC won’t help at all if you’re out of action due to a serious illness or medical event, like
• Cancer
• Stroke
• Heart Attack
• Autoimmune diseases
• Any long-term or acute medical condition that isn’t directly caused by an accident
For many self-employed people and small business owners, a major illness could be just as financially devastating (if not more so!) than an accident.
So, relying solely on ACC means you’ve got a huge gap in your safety net.
A SMARTER ALTERNATIVE: SAVE ON YOUR ACC LEVIES
What most business owners don’t realise is that ACC actually offers alternative products - and one of those is CoverPlus Extra.
CoverPlus Extra lets self-employed people choose a pre-agreed level of cover, which means:
• You get certainty about what you’ll be paid if you’re injured
• You don’t have to prove income at claim time
• You can nominate a lower cover level — which means paying lower ACC levies
Here’s the smart part: by lowering your ACC levies, you can redirect those savings into a Key Person Insurance policy that covers both illness and injury. This gives your business stronger financial protection if you (or another key team member) become seriously ill or pass away. That’s real peace of mind.
WHY THIS MATTERS FOR BUSINESS OWNERS
If you’re the engine of your business — the rainmaker, the technician, the strategic driver — then protecting your ability to work is critical. And protecting it properly means looking beyond ACC’s default option.
By shifting to CoverPlus Extra and pairing it with an income protection insurance and/or trauma insurance policy, you can:
• Reduce your ACC levies
• Get better, more comprehensive cover
• Protect yourself whether you’re injured or seriously unwell
• Avoid surprises or shortfalls at claim time
• Give your business (and your family!) more financial security
KEY PERSON INSURANCE CAN BE TAX DEDUCTIBLE
If you’re taking out Key Person Insurance to protect your business from the financial impact of losing a key team member (including yourself), the premiums may be tax deductible. For instance, if the policy is set up to compensate your business for lost revenue when a crucial person becomes seriously ill or passes away, the policy can be treated as a legitimate business expense.
As experienced insurance brokers, we specialise in Key Person cover — from assessing your business’s needs to helping you choose the right provider and level of protection. We can also help you ensure the policy is structured correctly to maximise the potential tax benefits for your business.
FINAL WORD
Don’t just assume ACC has you covered. If you’ve never reviewed your levy setup or never full considered how you’d survive financially (and how your business would survive) if you got sick — now’s the time.
Some small changes now could make a huge difference to your future.
Don’t leave what you’ve built to fate. Contact Craig today and let’s chat about Key Person Insurance / Income Protection Insurance to protect your business (and therefore you and your family!)
Our blog is not intended to be taken as personal advice and is for informational purposes only.
Before acting on this information, contact WealthHealth to ensure it is suitable for your circumstances.