What can lead to an Errors and Omissions claim against a broker?

The scenario that can lead to an Errors and Omissions claim against a broker primarily involves the broker's failure to identify the client's loss exposures and provide the necessary coverage. In the insurance industry, brokers are expected to conduct thorough assessments of their clients’ needs and exposures to risk. If a broker neglects this responsibility, it can lead to a situation where the client is underinsured or faces a significant gap in coverage during a claim. Such negligence can result in financial loss for the client, making the broker liable for failing to meet their professional duties. This claim hinges on the principle that brokers must act in the best interest of their clients by ensuring appropriate protection is in place against various risks.

The other choices do not carry the same implications for liability. Excessive marketing efforts may create an impression or concern but don't fundamentally breach a duty of care to the client. Proactive communication is generally a positive practice that enhances the broker-client relationship and does not contribute to liability issues. Misrepresentation of personal qualifications could lead to ethical concerns or reputational damage but does not directly relate to failing to provide coverage as fundamentally as the failure to identify loss exposures does.