Insurer files lawsuit to avoid covering legal battle over sexual harassment allegations

The insurer tied to Justin Baldoni and his production company Wayfarer Studios LLC filed a lawsuit in federal court Monday over its refusal to cover legal costs tied to sexual harassment allegations on the set of “It Ends With Us.”

Raleigh, North Carolina-based Harco National Insurance Co. filed its lawsuit in the U.S. District Court for the Southern District of New York, stating it has no obligation to cover costs related to the proceedings, as the alleged misconduct occurred before the policy became effective in July 2023. The insurer also claims it was never informed of the complaints made by co-star Blake Lively during the filming.

Industry experts have said sexual harassment allegations have complicated the film insurance market since the onset of the #MeToo movement.

Ms. Lively’s lawsuit, filed in December 2024, states that she first began raising her concerns between April and June 2023 during filming. Harco also claims that Mr. Baldoni’s production company failed to disclose these complaints in its 2024 policy renewal application, despite receiving letters in November 2023 and further allegations during a January 2024 meeting.

“Despite the acknowledged pre-July 2023 complaints by Lively and others, Wayfarer’s July 2023 Application for the 2023 Policy includes a letter from Wayfarer which warrants that no person or entity for whom the insurance is intended has any knowledge or information of any act, error, omission, fact or circumstance which may give rise to a claim which may fall within the Employment Practices Liability coverage if issued by Harco,” the lawsuit states.

Wayfarer has not commented on the lawsuit.