Why ACC’s CoverPlus Extra is Better

When you’re self-employed or a contractor in New Zealand, managing your income during times of injury is critical. ACC’s CoverPlus Extra (CPX) is a tailored alternative to the default CoverPlus policy, offering flexibility and certainty. Here’s why CPX is typically the smarter choice:

Main Advantages of CoverPlus Extra over CoverPlus:

• Pre-agreed Level of Cover – With CPX, you and ACC agree in advance on the amount you’ll receive if you’re injured and can’t work. This means your compensation won’t fluctuate based on your recent earnings.
• Faster Payouts – Because income isn’t re-assessed at the time of a claim, CPX enables quicker claims processing and payments.
• Consistency of Income – Even if your actual income fluctuates or is lower than expected (e.g. due to reduced work hours or recent time off), your agreed amount stays the same.
• No Need to Prove Loss of Earnings at Claim Time – Unlike CoverPlus, where ACC looks at your most recent income records, CPX eliminates the hassle of documentation and potential disputes.
• Partial Return to Work Support – CPX allows you to continue receiving part of your agreed payment if you return to work part-time, making rehabilitation more financially viable. Whereas Standard CoverPlus reduces payments significantly as soon as any work resumes.
• Better for New or Growing Businesses – If your income is expected to grow, CPX allows you to lock in a higher level of cover based on forecasts or previous income.

Business owners with staff: If your team keeps the business running and generating income while you’re recovering, your CPX payments remain unaffected.

Contractors with passive income: Income from ongoing contracts or passive sources won’t impact your compensation under CPX.

Whereas Standard CoverPlus reduces payments based on other income received.

• Tax Deductible Premiums – Just like with standard ACC, CPX premiums are tax-deductible for business owners and self-employed individuals.
• Easier to Budget – Knowing exactly how much you’ll get if you’re injured makes it easier to plan financially, particularly if you have ongoing business or personal expenses.

When Standard Cover Plus May Be Riskier

• If you’re in a startup phase or your income has recently dropped, the default CoverPlus cover might provide insufficient compensation.
• You have to provide proof of income at claim time — potentially delaying support when you need it most.
• Returning to any amount of work, even part-time, can significantly reduce your entitlements under CoverPlus.
• Income generated in the business will affect the amount you receive at claim.

Best for

• Sole traders, contractors, freelancers, and self-employed business owners.
• Anyone whose income is unpredictable or seasonal.
• Business owners who want to protect their lifestyle or financial commitments with reliable private income/mortgage protection from injury.