Harco National Insurance Company has filed a lawsuit against Wayfarer Studios LLC 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 dispute centers on Lively's allegations of sexual harassment and retaliation during the production of the film "It Ends With Us." Lively filed her lawsuit in December 2024, claiming that Baldoni and other executives at Wayfarer Studios subjected her to a hostile work environment.
Harco National Insurance issued management liability policies to Wayfarer Studios for the periods from July 2023 to July 2024 and from July 2024 to July 2025. The insurer argues that the alleged incidents occurred prior to the effective date of the policies and that Wayfarer Studios failed to disclose these potential claims during the application process. As a result, Harco contends it has no duty to defend or indemnify Wayfarer Studios in the ongoing litigation.
This legal action adds complexity to the ongoing disputes between Lively and Baldoni. In response to Lively's allegations, Baldoni filed a defamation lawsuit against Lively and her husband, actor Ryan Reynolds, in January 2025, which was dismissed in June 2025.
The trial for Lively's harassment lawsuit is scheduled for March 2026, and the outcome of Harco's lawsuit may significantly impact the financial responsibilities of Wayfarer Studios and Baldoni.
As the legal proceedings continue, the entertainment industry closely monitors the developments, which highlight the complexities of insurance coverage in cases involving allegations of workplace misconduct.