This is part 4 of a blog series: Smart Insurance Choices for Professionals & Business Owners.
If you’re a business owner in New Zealand and take drawings instead of a PAYE salary, chances are you’re paying ACC CoverPlus levies without realising there’s a better way to structure your protection. Many business owners overpay for accident-only cover when, for the same cost, they could have a comprehensive insurance plan that covers both accidents and illnesses—which ACC alone doesn’t do.
Here’s why restructuring your ACC levies and adding key person or income protection insurance is one of the smartest financial moves you can make.
The Problem: ACC Only Covers Accidents
ACC CoverPlus is great—if you have an accident. But what if you suffer from:
✔ A serious illness (cancer, heart attack, stroke)?
✔ A mental health condition that takes you out of work?
✔ A degenerative disease that impacts your ability to run your business?
None of these are covered under ACC. That means if you get sick and can’t work, you’re on your own financially. This is a major risk for business owners who rely on their income to cover mortgages, expenses, and business costs.
The Solution: Restructure Your ACC & Add Comprehensive Insurance
Instead of paying high ACC levies for accident-only cover, business owners can reduce their ACC payments and use the savings to fund private income protection or key person insurance.
How It Works:
1️⃣ Lower Your ACC Levy – By adjusting your ACC cover, you choose a lower level of accident cover (called a deductable plan). This reduces the levies you pay.
2️⃣ Add Private Income Protection – The money saved from ACC can be redirected into a comprehensive income protection plan that covers both accidents AND illnesses.
3️⃣ Protect Key People in Your Business – If your business depends on you (or another key person), key person insurance ensures your business continues running if you’re unable to work.
The Benefits: Why This Strategy Works
✅ Same Cost, Better Cover – Instead of paying just for accident cover, your money now funds accident + illness protection, ensuring you’re covered no matter what happens.
✅ Guaranteed Coverage – ACC payouts are based on past earnings and can be contested, whereas private insurance guarantees pre-agreed cover levels.
✅ More Flexibility – Private insurance pays out faster, covers more conditions, and allows you to customise waiting periods and payment terms.
✅ Protects Your Business & Family – If you’re the key revenue generator, a solid insurance plan means your business and family won’t suffer financially if something happens to you.
Real-World Example
Let’s say a business owner was paying $5,000 annually in ACC levies for accident-only cover. By restructuring their ACC to a lower cover level, they could reduce levies to $2,500. The remaining $2,500 could be used to fund a comprehensive income protection plan that covers accidents AND illnesses—something ACC doesn’t provide.
Now, instead of just being covered for workplace accidents, they’re fully covered for all health-related work disruptions, providing total peace of mind.
Take Control of Your Cover
If you’re a business owner on drawings, you could be overpaying for limited ACC cover without realising it. A proper insurance plan can give you better protection, more certainty, and full accident + illness coverage—all for the same or even lower cost.
📞 Book a free ACC review today and find out how much better your coverage could be.
