Harco National Insurance Co. has refused to cover filmmaker Justin Baldoni and executives at his production company, Wayfarer Studios, for claims brought by actress Blake Lively alleging sexual harassment and a hostile work environment during the filming of It Ends With Us. According to the insurer, its policies exclude coverage due to prior knowledge of the alleged incidents before the policy was issued.
Baldoni and Wayfarer had requested that Harco provide defense and indemnity coverage under their management liability insurance for the lawsuit filed by Lively. However, Harco asserts it has no such obligation, pointing to “prior knowledge” exclusions within the policies. The insurer claims that Baldoni and other senior executives at Wayfarer were already aware of the alleged misconduct likely to lead to legal action prior to applying for coverage in July 2023 — but failed to disclose that information on their application.
Lively’s complaint, filed in December 2024, accuses Baldoni and Wayfarer’s leadership of engaging in inappropriate behavior on set from April to June 2023. During this time, she alleges she was subjected to sexual harassment, a toxic workplace environment, and later retaliation for reporting the misconduct. The suit specifically names Baldoni — who served as director, co-lead actor, and co-chairman of Wayfarer — along with Wayfarer CEO Jamey Heath and executive Steve Sarowitz.
In her lawsuit, Lively seeks compensatory damages, emotional distress damages, statutory penalties, punitive damages, attorney fees, and interest. She alleges Baldoni and Heath controlled her working conditions and both participated in and failed to stop the harassment. The complaint also claims that Wayfarer executives acknowledged internal issues, including serious human resources concerns, during the 2023 production period.
Harco states that Wayfarer’s insurance application, submitted in July 2023 for a policy that would run from July 15, 2023 to July 15, 2024, included a warranty letter declaring that the company was unaware of any incidents that might give rise to an employment practices liability claim. Harco argues this declaration was false, given that complaints had already been raised months earlier.
Additionally, the insurer says Wayfarer failed to notify it within the required reporting window about a November 2023 demand from Lively’s attorney requesting workplace changes. Harco further contends that when Wayfarer applied to renew its coverage for the July 2024 to July 2025 term, it again failed to disclose any pending or potential claims — despite Lively’s lawsuit having been filed just months earlier.
On June 20, 2025, Harco formally notified Baldoni and Wayfarer that it was denying coverage under both the 2023 and 2024 policies. The company is now seeking a declaratory judgment in federal court in Manhattan to confirm that it has no duty to defend or indemnify the claims brought by Lively.
Wayfarer and Baldoni have strongly rejected the allegations, calling them “false and outrageous,” and have responded with legal action of their own. Baldoni previously filed a $400 million defamation lawsuit against Lively and her husband, actor Ryan Reynolds, accusing them of orchestrating a smear campaign. That case was dismissed by a New York judge, who ruled that statements made in legal filings are not subject to defamation claims. The court also dismissed Baldoni’s $250 million lawsuit against The New York Times, which had published details of the harassment allegations.
The film It Ends With Us, directed by Baldoni, is based on Colleen Hoover’s bestselling novel and explores themes of love and domestic violence.
The Harco policies issued to Wayfarer provided $2 million in directors and officers (D&O) and entity liability coverage, along with $2 million in employment practices liability (EPL) coverage. The EPL coverage also includes a separate $1 million defense costs limit. Both the 2023 and 2024 policies are said to be identical in structure.
Harco is a North Carolina-based specialty insurer and part of the IAT Insurance Group. Its legal action in the Southern District of New York aims to resolve the dispute over its coverage obligations.