11/03/2025
In the heart of Blenheim, amidst the rolling vineyards and sun-drenched landscapes, lived Tom, a passionate winemaker who had turned his love for viticulture into a thriving business. His boutique winery, "Tom's Vines," was the talk of the town, attracting both locals and tourists eager to taste his unique blends.
Tom had always been meticulous about his craft, ensuring every grape was perfect, every bottle exquisite. However, when it came to the administrative side of his business, he was less attentive. Like many self-employed individuals, Tom was automatically enrolled in ACC's standard CoverPlus, which provides compensation based on 80% of the previous year's taxable income.
One sunny afternoon, while inspecting his vineyard, Tom tripped over an uneven patch and suffered a severe ankle injury. The doctor informed him that he would need to rest for several weeks, making it impossible for him to oversee the winemaking process during the critical harvest season.
Confident that ACC would support him during his recovery, Tom filed a claim. However, he was in for an unpleasant surprise. ACC calculated his compensation based on his taxable income from two years prior—a year when a late frost had devastated his crops, leading to significantly reduced earnings. This meant his weekly compensation was much lower than he had anticipated, putting a strain on his finances during an already challenging time.
Had Tom been aware of ACC's CoverPlus Extra (CPX), he could have chosen a predetermined level of income coverage, ensuring a consistent compensation regardless of past earnings fluctuations. CPX is particularly beneficial for business owners with variable incomes, as it allows them to negotiate an agreed level of lost earnings cover, providing certainty in the event of an injury, as no proof of loss income is required.
Reflecting on his predicament, Tom realised the importance of understanding and customising his ACC coverage. He wished he had consulted with an expert who could have guided him through the nuances of ACC policies, ensuring he had the best protection tailored to his unique situation, including using the savings from levies to put comprehensive additional cover in place to ensure illness and accidents are covered.
If you're a business owner, don't let Tom's experience be yours. Navigating the intricacies of ACC coverage can be daunting, but you don't have to do it alone.
For personalised insurance advice that includes a thorough understanding of ACC & the options, reach out to me, Jenn, at MADCOW Financial.
With expertise and a client-focused approach, I can help you tailor your coverage to fit your specific needs, ensuring peace of mind as you focus on what you do best—running your life and your business.
