Contentious Hollywood dispute escalates, drawing insurance companies into the fray
In a recent development, film producer Justin Baldoni and his production company, Wayfarer Studios, have filed a lawsuit against three insurance companies - New York Marine, QBE Insurance Group Limited, and Certain Underwriters at Lloyd’s. The lawsuit, filed on July 30, 2025, accuses the insurers of breach of contract for refusing to cover the legal defense costs related to Blake Lively’s December 2024 sexual harassment and retaliation lawsuit.
The insurers are alleged to have denied coverage, claiming exclusions based on prior knowledge of alleged incidents before the insurance policy dates and late notice of claims. This legal action is a response to the insurers' refusal to shoulder the costs of defending Baldoni and Wayfarer in the ongoing lawsuit.
Prior to this, Harco National Insurance Company, another insurer for Wayfarer, had separately sued Baldoni and Wayfarer. Harco's lawsuit alleges that its policies did not cover the Lively lawsuit because the alleged sexual harassment began prior to the policy start dates and the claims were not timely reported. Harco denies responsibility for Baldoni’s legal fees and refuses to defend or indemnify the studio or Baldoni.
Baldoni and Wayfarer are contesting these denials by suing the insurers to enforce coverage obligations, arguing that their policies promised defense and indemnity for lawsuits like Lively’s. This dispute over insurance coverage has added complexity to the ongoing Blake Lively suit, with the trial scheduled for March 2026 in New York City.
The core of this ongoing legal battle includes:
- Blake Lively’s lawsuit against Baldoni, Wayfarer, and executives alleging harassment and retaliation.
- Baldoni’s countersuit (recently dismissed).
- Harco’s lawsuit denying coverage, citing prior knowledge and policy limitations.
- Baldoni and Wayfarer’s new lawsuit against several insurers for breach of contract over refusal to pay defense costs.
This latest July 2025 suit is the most recent and publicly reported legal escalation in this complex dispute. A trial date for Mr. Baldoni and Wayfarer has not been set. Wayfarer Studios has disbursed over USD 8 million in legal fees for Justin Baldoni.
The lawsuit claims that the insurance policies were designed to protect against reputational harm and personal injury claims like those alleged by Blake Lively. The lawsuit concerns more than USD 8 million in defense costs incurred in the ongoing litigation brought by actor Blake Lively.
The insurers, including New York Marine, QBE, and Lloyd's underwriters, are accused of wrongfully refusing to honor commercial general liability and media insurance policies. The lawsuit was filed in the Los Angeles Superior Court on August 4, 2025.
The claimants are seeking declaratory relief, damages for breach of contract, punitive damages for alleged bad faith conduct, reimbursement of past defense expenses, and indemnification of future liabilities arising from the Lively suit. All three insurance providers have refused to provide coverage or contribute to defense costs.
Blake Lively issued legal proceedings against Justin Baldoni and Wayfarer Studios in April 2025, alleging reputational and emotional harm during the production of It Ends With Us, a 2024 film directed by Justin Baldoni and produced by Wayfarer Studios, based on Colleen Hoover’s bestselling novel.
This legal battle is far from over, with both parties preparing for what promises to be a lengthy and complex courtroom showdown.
- In response to the insurance companies' refusal to cover legal defense costs for the ongoing Blake Lively lawsuit, Baldoni and Wayfarer Studios have filed a lawsuit against three insurance providers, New York Marine, QBE Insurance Group Limited, and Certain Underwriters at Lloyd’s, claiming breach of contract.
- The ongoing dispute between Baldoni, Wayfarer, and several insurance companies not only involves Blake Lively's lawsuit against them for sexual harassment and retaliation, but also includes claims related to entertainment and finance, as the lawsuit concerns more than USD 8 million in defense costs incurred and seeks reimbursement of past expenses, indemnification of future liabilities, and coverage for reputational harm and personal injury.
