ACC CoverPlus Extra (CPX)

CoverPlus Extra is disability insurance that pays sole traders and business owners an agreed weekly compensation if they suffer an accident and can’t work.

As a business owner, contractor or self-employed, you have to pay ACC levies for an Accident only disability insurance called CoverPlus, which is designed to cover up to 80% of your last tax year income if you’re injured and unable to work.

ACC CoverPlus Extra is superior because it pays an agreed monthly compensation, and you can save money on levies. 

In addition, it allows for a personal loss of income protection plan that is designed to fit you and your family, covering medical or illness related issues.

ACC CoverPlus Extra Insurance is an agreed value disability insurance available for sole traders and business owners in New Zealand.

What is ACC CoverPlus Extra (CPX)?

CPX is an optional agreed value income protection insurance that covers self-employed people and non-PAYE shareholder-employees that can negotiate a pre-agreed level of loss of earnings compensation

This way, you know exactly how much you’ll receive each week if you are injured and can’t work. However, compared to a private income protection policy, ACC is an expensive type of cover.

In addition, if you choose CoverPlus Extra, this will replace your standard CoverPlus cover.

CPX is especially suited to those who: 

  • have fluctuating income, either yearly or seasonal 
  • want to apply for more or less cover than your actual income 
  • is newly self-employed with no earnings history and wants assurances around your cover.
  • want to reduce the CoverPlus Extra levy and get private insurance
  • if your business would continue generating income if you were injured and couldn’t work
  • you might split your income with a partner or spouse or take advantage of options to reduce your tax.

CoverPlus Extra has several important advantages above the default ACC CoverPlus, which is more beneficial.

ACC Restructuring

Using ACC CoverPlus as the only source of income protection can be tricky.

If you are diagnosed with an illness, you will not be eligible for ACC benefits. Instead, you must rely on Work and Income (WINZ) until you can return to work.

In addition, there are specific gaps in terms of disease and degeneration, and switching to Cover Plus Extra is the first step toward filling those gaps.

Solutions for self-employed and non-PAYE shareholder employee

If you are self-employed or a non-PAYE shareholder employee, various options are available to upgrade your cover to Cover Plus Extra and save some money.

Non-PAYE Shareholders can change their ACC classification codes with ACC CoverPlus Extra (occupation codes that determine your level of risk and levies).

There are relatively few instances in which ACC CoverPlus Extra would not benefit business owners or sole traders, and it is free to set up. As a result, many New Zealanders have benefited from reclassification.

Self-employed and contractors have more options with ACC CoverPlus Extra. For instance, If you have a life insurance policy and private income protection or are applying for it, you may be able to reduce your ACC cover to lower your levies.

ACC CoverPlus vs ACC CoverPlus Extra

We can look at strategies to reduce your level of cover with ACC and save you money on levies.

We can then invest the levies saved in a private insurance package that pays you and ACC in the event of an accident and covers illness-related events, giving you the best of both worlds and better outcomes at claims time.

ACC CoverPlus

  • Invoiced based on your last year’s financial earnings
  • Pays 80% of your previous years earnings (limits and conditions apply)
  • Will be reduced if your business continues to generate income during your time off work
  • Will reduce even further as you return to work on a part time basis
  • You must prove loss of income

ACC CoverPlus Extra

  • Clarity at claim time
  • Invoiced based on your level of agreed cover
  • Pays 100% of that agreed cover
  • It does not conflict with continued business income
  • Pays 100% of benefit as you return to work part-time
  • You do not have to prove your loss of income

There are only a handful of situations where ACC CoverPlus Extra isn’t the best choice for business owners or sole traders.

LifeCovered, the income protection broker, can assist you in changing your ACC protection.

Find out more


The main difference between CoverPlus and CoverPlus Extra is the amount of lost earnings compensation you receive. With CoverPlus Extra you get 100% of the amount you negotiate. Because you have agreed on your cover, you will be receiving compensation sooner.