“Supervisor” Hostile Environment Sexual Harassment Claims, Liability Insurance, and the Trend Towards Negligence

A lack of settled standards for determining liability in supervisor hostile environment sexual harassment lawsuits combined with similar uncertainty in the context of employer liability insurance coverage has resulted in increased litigation in this area. This Note argues that the current predominant standard in the employer liability context, which is based on negligence principle should be rejected in favor of an apparent authority standard, which more appropriately strikes a balance between encouraging employers to identify harassing behaviors and exonerating them from liability when they do so and take appropriate remedial action. It further argues that in order to develop effective mechanisms for preventing supervisor hostile environment sexual harassment and to adequately compensate victims courts should consider the cost-shifting effects of employer liability insurance coverage and also the conduct that substantive standards will encourage or discourage.