No liability coverage for sexual harassment

The Vermont Supreme Court has ruled in favour of three US insurers in their contention that liability insurance does not cover sexual harassment. Two employees had sued a business and their supervisor on the grounds that he had made inappropriate sexual remarks. The company settled the claim for $100,000 and attempted to reclaim this from its insurers under its liability insurance policy. The insurers refused to pay on the grounds that the supervisor’s actions were not an accident.