Harco National Insurance Company has filed a lawsuit against Wayfarer Studios and its co-founder, Justin Baldoni, seeking a declaration that it is not obligated to cover the legal costs associated with Blake Lively's sexual harassment lawsuit. The insurer argues that the alleged incidents occurred prior to the effective date of the policies issued to Wayfarer Studios, and that the studio failed to disclose prior knowledge of potential claims during the application process. The court will determine whether Harco is required to provide coverage for the ongoing litigation.
This development adds complexity to the existing legal battle between Lively and Baldoni. Lively filed a lawsuit alleging sexual harassment and retaliation on the set of "It Ends With Us," while Baldoni has denied the allegations and filed a countersuit for defamation. The trial is scheduled for March 2026, and the insurance dispute may influence the financial dynamics of the case.
The outcome of this legal dispute could have significant implications for the entertainment industry, particularly concerning the responsibilities of insurers and the importance of transparency during the insurance application process.