Justin Baldoni and his production company Wayfarer may face a steep legal bill after their insurer, Harco National Insurance, filed a lawsuit on Monday in New York federal court, stating it has no obligation to cover legal costs tied to sexual harassment allegations on the set of It Ends With Us.
Harco argues that the alleged misconduct occurred before the policy became effective in July 2023 and that it was never informed of the complaints made by co-star Blake Lively during the filming. Lively reportedly raised the issues between April and June 2023, months before her formal lawsuit in December 2024. The insurer also claims that Wayfarer failed to disclose these complaints in its 2024 policy renewal application, despite receiving a demand letter in November 2023 and further allegations during a January 2024 meeting.
The lawsuit stems from Lively’s accusations against Baldoni and his team of retaliation and harassment, alleging they tried to damage her reputation after she spoke up. Baldoni countersued for $400 million, asserting that Lively and her husband, Ryan Reynolds, orchestrated a smear campaign. The case has drawn Hollywood attention, with Taylor Swift subpoenaed and billionaire Steve Sarowitz backing Baldoni, while Reynolds supports Lively.
According to Harco’s complaint, the production company’s $2 million coverage for directors, officers, and employment practices is invalidated by these undisclosed prior claims. In June, Harco formally denied coverage, stating the circumstances fall outside the policy’s terms.
If the court sides with Harco, Wayfarer and Baldoni could face a six-figure legal burden. The situation has become a high-stakes standoff between wealthy stakeholders, turning what began as a workplace complaint into one of Hollywood’s most-watched legal dramas.
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