Insurers set a base rate for the architectural profession based on claims trends, regulation, known risks and anticipated emerging risks;  they also factor in the cost of managing their business.

They then apply a level of discounting to the NZACS facility.

NZACS members represent a lower risk than non NZACS members (based on the claims data (frequency and cost)) and as such, members benefit from broader cover and lower base premiums than a ‘stand-alone’ policy holder would get.

From this ‘base rate’, individual members’ premium is calculated against fee income, the type of activities, claims, the amount insurers have paid in claims verses the premium collected, and the policy limit required.

Extensions for higher weathertightness limits, changes to the coverage and taking higher ‘voluntary excess’ then add or reduce the price.

Other companion policies have similar rating models but most also factor in staff numbers.