Schmidt v. Smith

The primary question in this appeal is whether insurance coverage exists under the employers liability section of a workers’ compensation policy for claims of workplace sexual harassment when the harassment results in bodily injury. The specific question is whether the policy’s exclusion of coverage for damages arising out of harassment (among other things) is effective to deny such coverage. We find that to the extent the exclusion would deny coverage for bodily injury caused by acts of sexual harassment in the workplace, the exclusion would prevent an employer from complying with N.J.S.A.…