The insurer for the actor Justin Baldoni and other executives at his movie studio Wayfarer says its policies do not cover actress Blake Lively’s allegations of sexual harassment during the filming of the movie “It Ends With Us.”
Wayfarer and Baldoni have demanded that Harco National Insurance Co. provide it with a defense and indemnity for liability in Lively’s lawsuit against them. But Harco claims it has no obligation due to prior knowledge exclusions in its management liability policies. Harco maintains that Baldoni and other Wayfarer executives had knowledge of the incidents that were likely to result in claims when they applied for insurance in July 2023 yet did not disclose the incidents and that they did not file a claim for a 2023 incident on time.
Lively has alleged that during early 2023 while she was working as a lead actor in the film, Baldoni and executives at Wayfarer sexually harassed her and subjected her to a hostile work environment. She further alleges that they later retaliated against her for complaining about the alleged mistreatment.
According to her complaint, the alleged harassment was primarily by Baldoni and Heath, both of whom controlled Lively’s work given Baldoni’s positions as a co-chairman of Wayfarer, director of the film, and the co-lead in the film, and Heath’s position as the CEO of Wayfarer and his frequent presence on the set. Baldoni, Heath, and another Wayfarer executive, Steve Sarowitz, were also allegedly involved in the retaliation.
As relief, Lively has sought compensatory damages, damages for mental pain and anguish and severe and serious emotional distress, pre- and post-judgment interest, statutory and civil penalties, punitive damages, and attorneys’ fees and costs.
Lively’s lawsuit was filed in December 2024. However, the suit alleges that during April through June 2023, which was before the inception of the 2023 policy issued by Harco, Lively and others complained of sexual harassment on the set of the film. It further alleges that Baldoni and Heath acknowledged that they were aware of “serious HR problems on set.” In addition, allegations in a separate action filed by Wayfarer against Lively admit that Lively raised her complaints with Baldoni and Heath as early as May 2023, according to Harco.
Harco argues that despite the pre-July 2023 complaints by Lively and others, Wayfarer’s July 2023 application for the 2023 management liability insurance policy includes a letter from Wayfarer warranting that they did not have any knowledge of any act, error, omission, fact or circumstance which may give rise to a claim under the employment practices liability coverage issued by Harco.
Harco also contends that Wayfarer failed to report a November 2023 demand from Lively’s lawyer for workplace changes within the reporting time period required in the 2023 policy. Furthermore, in its application for 2024 renewal, Harco says Wayfarer advised it that there was no claim, notice of potential claim, or any situation that may give rise to a claim within the last 12 months.
On June 20, 2025, Harco advised Baldoni and Wayfarer that there was no coverage for the Lively lawsuit under the 2024 or 2023 policy. Since the insureds disagree with Harco’s coverage position, Harco is seeking a declaratory ruling that it has no obligation to provide coverage.
Baldoni and Wayfarer have denied Lively’s allegations, calling them false and outrageous. They have fought back with several lawsuits of their own. Last month a New York judge dismissed Baldoni’s $400 million defamation suit that he filed against Lively and her husband, actor Ryan Reynolds, alleging a smear campaign. The judge ruled that allegations made in a lawsuit are exempt from libel claims. The judge also dismissed Baldoni’s $250 million defamation lawsuit against The New York Times, which had reported on Lively’s sexual harassment allegations.
“It Ends With Us” is about a romance that takes a dark turns into domestic violence.
Harco issued a 2023 policy to Wayfarer for the period from July 15, 2023 to July 15, 2024 and an identical 2024 policy from July 15, 2024 to July 15, 2025. The policies provide $2,000,000 directors and officers and entity liability coverage and $2,000,000 employment practices liability coverage. The EPL coverage includes an additional defense costs separate limit of $1,000,000.
Harco is a North Carolina-based specialty insurer and member of the IAT Insurance Group. Its lawsuit was filed in federal district court in Manhattan.
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