diff --git a/scalac-scoverage-plugin/src/main/scala/scoverage/report/CodeGrid.scala b/scalac-scoverage-plugin/src/main/scala/scoverage/report/CodeGrid.scala
index 2b590b0f..c55eb66b 100644
--- a/scalac-scoverage-plugin/src/main/scala/scoverage/report/CodeGrid.scala
+++ b/scalac-scoverage-plugin/src/main/scala/scoverage/report/CodeGrid.scala
@@ -52,7 +52,7 @@ class CodeGrid(mFile: MeasuredFile) {
           sb append spanStart(cell.status)
           style = style2
         }
-        sb.append(cell.char)
+        xml.Utility.escape(cell.char.toString, sb)
       })
       sb append "</span>"
       sb.toString
diff --git a/scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/ClassContainingHtml.scala b/scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/ClassContainingHtml.scala
new file mode 100644
index 00000000..49ce9185
--- /dev/null
+++ b/scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/ClassContainingHtml.scala
@@ -0,0 +1,5 @@
+package coverage.sample
+
+class ClassContainingHtml {
+  def some_html = <div>HTML content</div>
+}
diff --git a/scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/Class1.scala b/scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/ClassInMainDir.scala
similarity index 78%
rename from scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/Class1.scala
rename to scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/ClassInMainDir.scala
index 22a59500..08dd1394 100644
--- a/scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/Class1.scala
+++ b/scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/ClassInMainDir.scala
@@ -1,5 +1,5 @@
 package coverage.sample
 
-class Class1 {
+class ClassInMainDir {
   def msg_coverage = println("measure coverage of code")
 }
diff --git a/scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/subdir/Class2.scala b/scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/subdir/ClassInSubDir.scala
similarity index 74%
rename from scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/subdir/Class2.scala
rename to scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/subdir/ClassInSubDir.scala
index 5e6a5dec..53fa1beb 100644
--- a/scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/subdir/Class2.scala
+++ b/scalac-scoverage-plugin/src/test/resources/scoverage/forHtmlWriter/src/main/scala/subdir/ClassInSubDir.scala
@@ -1,5 +1,5 @@
 package coverage.sample
 
-class Class2 {
+class ClassInSubDir {
   def msg_test = println("test code")
 }
diff --git a/scalac-scoverage-plugin/src/test/scala/scoverage/ScoverageHtmlWriterTest.scala b/scalac-scoverage-plugin/src/test/scala/scoverage/ScoverageHtmlWriterTest.scala
index f565b906..a7076876 100644
--- a/scalac-scoverage-plugin/src/test/scala/scoverage/ScoverageHtmlWriterTest.scala
+++ b/scalac-scoverage-plugin/src/test/scala/scoverage/ScoverageHtmlWriterTest.scala
@@ -12,39 +12,49 @@ import org.scalatest.FunSuite
 
 class ScoverageHtmlWriterTest extends FunSuite {
 
-  test("HTML coverage report has been created correctly") {
+  val rootDirForClasses = new File(getClass.getResource("forHtmlWriter/src/main/scala/").getFile)
 
-    def tempDir(): File = {
-      val dir = new File(IOUtils.getTempDirectory, UUID.randomUUID().toString)
-      dir.mkdirs()
-      dir.deleteOnExit()
-      dir
-    }
+  def pathToClassFile(classLocation: String): String =
+    new File(rootDirForClasses, classLocation).getCanonicalPath
 
-    val coverage = Coverage()
+  val pathToClassContainingHtml = pathToClassFile("ClassContainingHtml.scala")
+  val pathToClassInSubDir = pathToClassFile("subdir/ClassInSubDir.scala")
+  val pathToClassInMainDir = pathToClassFile("ClassInMainDir.scala")
 
-    val class2 = new File(getClass.getResource("forHtmlWriter/src/main/scala/subdir/Class2.scala").getFile()).getCanonicalPath()
-    val class1 = new File(getClass.getResource("forHtmlWriter/src/main/scala/Class1.scala").getFile()).getCanonicalPath()
+  val statementForClassContainingHtml = Statement(pathToClassContainingHtml,
+    Location("coverage.sample", "ClassContainingHtml", "ClassContainingHtml", ClassType.Class, "some_html", pathToClassInSubDir),
+    3, 74, 97, 4, "<div>HTML content</div>",
+    "scala.Predef.println", "Apply", false, 0)
+  val statementForClassInSubDir = Statement(pathToClassInSubDir,
+    Location("coverage.sample", "ClassInSubDir", "ClassInSubDir", ClassType.Class, "msg_test", pathToClassInSubDir),
+    2, 64, 84, 4, "scala.this.Predef.println(\"test code\")",
+    "scala.Predef.println", "Apply", false, 0)
+  val statementForClassInMainDir = Statement(pathToClassInMainDir,
+    Location("coverage.sample", "ClassInMainDir", "ClassInMainDir", ClassType.Class, "msg_coverage", pathToClassInMainDir),
+    1, 69, 104, 4, "scala.this.Predef.println(\"measure coverage of code\")",
+    "scala.Predef.println", "Apply", false, 0)
 
-    coverage.add(
-      Statement(class2,
-        Location("coverage.sample", "Class2", "Class2", ClassType.Class, "msg_test", class2),
-        2, 60, 80, 4, "scala.this.Predef.println(\"test code\")",
-        "scala.Predef.println", "Apply", false, 0)
-    )
+  def createTemporaryDir(): File = {
+    val dir = new File(IOUtils.getTempDirectory, UUID.randomUUID().toString)
+    dir.mkdirs()
+    dir.deleteOnExit()
+    dir
+  }
 
-    coverage.add(
-      Statement(class1,
-        Location("coverage.sample", "Class1", "Class1", ClassType.Class, "msg_coverage", class1),
-        1, 64, 99, 4, "scala.this.Predef.println(\"measure coverage of code\")",
-        "scala.Predef.println", "Apply", false, 0)
-    )
+  def writeCoverageToTemporaryDir(coverage: Coverage): File = {
+    val outputDir = createTemporaryDir()
+    val htmlWriter = new ScoverageHtmlWriter(rootDirForClasses, outputDir)
+    htmlWriter.write(coverage)
+    outputDir
+  }
 
-    val dir = getClass.getResource("forHtmlWriter/src/main/scala/").getFile()
-    val outputDir = tempDir()
+  test("HTML coverage report contains correct links") {
 
-    val htmlWriter = new ScoverageHtmlWriter(new File(dir), outputDir)
-    htmlWriter.write(coverage)
+    val coverage = Coverage()
+    coverage.add(statementForClassInSubDir)
+    coverage.add(statementForClassInMainDir)
+
+    val outputDir = writeCoverageToTemporaryDir(coverage)
 
     val htmls = List("overview.html", "coverage.sample.html")
 
@@ -57,7 +67,18 @@ class ScoverageHtmlWriterTest extends FunSuite {
         }
       }
    
-      assert( links.toSet == Set("Class1.scala.html", "subdir/Class2.scala.html") )
+      assert( links.toSet == Set("ClassInMainDir.scala.html", "subdir/ClassInSubDir.scala.html") )
     }
   }
+
+  test("HTML coverage report escapes HTML") {
+
+    val coverage = Coverage()
+    coverage.add(statementForClassContainingHtml)
+    val outputDir = writeCoverageToTemporaryDir(coverage)
+
+    val contentsOfFileWithEmbeddedHtml = Source.fromFile(new File(outputDir, "ClassContainingHtml.scala.html")).getLines.mkString
+    assert( !contentsOfFileWithEmbeddedHtml.contains("<div>HTML content</div>") )
+    assert( contentsOfFileWithEmbeddedHtml.contains("&lt;div&gt;HTML content&lt;/div&gt;") )
+  }
 }