People don't tend to think about insurance until its too late.
ACC is something that people tend not to think about too much when they're beginning their journey into self-employment.
Understanding how the ACC system works can affect the amount you could be eligible for in the event of an accident.
From what I've seen, most insurance advisers now take steps
to discuss ACC Cover Plus Extra - the agreed sum insurance of ACC - to tie into how other insurance payouts work in the event of a claim.
Although ACC provides a standard cover that means if you have an accident you are paid out 80 per cent of your earnings, Cover Plus Extra is for the self-employed, allowing them an agreed amount of cover. This is useful if your earnings change or you're starting a new business or in industries where earnings change year-to-year.
ACC payouts are calculated on the prior year's earnings. If you don't have Cover Plus Extra, you're gambling because your payout could be based on a bad year. Talk to your insurance adviser and accountant to be sure you're covered adequately.
