Why are New Agent rates lower than Experienced Agent rates?

Like all insurance products, E&O insurance is experienced rated. New agents historically have less claims because they are closer to their product training and usually stick to the products they are trained to sell. Most importantly, the number of clients and products sold and serviced is much smaller than an experienced agent. It is a smaller pool of risk. The larger the agent's business, the greater chance that an error or omission may have occurred on a policy sold and serviced. Experienced agents also start to diversify and sell a variety of products that may be outside their core expertise. Many agent claims are from non-core product sales. For all of those reasons, an experienced agent is a higher risk.