It may not damage your child but I think it is having serious affects on your relationship with your husband.
What about staying with your daughter in her room until she falls asleep. Perhaps having the comfort of someone nearby will help her go past her fears and fall asleep. Of course this has gone on for a year so it may not be that easy. Keeping a night light may help.
May need professional help or more research for solutions.
Here is a PDF I found with google search www.ogradywellbeing.com/wp.../12/HelpYourChildSleepAlone2.pdf