Justin Baldoni and Wayfarer Sue Insurers Over Denied Coverage in Blake Lively Lawsuit Battle

As the high-profile legal battle between Blake Lively and Justin Baldoni heads toward its March 2026 trial date, a new front has opened in California — one that puts the spotlight on insurance industry giants and the escalating financial toll of the fight.

In a lawsuit filed July 30 in Los Angeles Superior Court, Baldoni, his company Wayfarer Studios, billionaire backer Steve Sarowitz, and several related entities, including It Ends With Us Movie LLC (IEWUM), are suing multiple insurance providers for allegedly breaching their duty to defend and indemnify the Wayfarer team in Lively’s ongoing defamation, harassment, and retaliation lawsuit.

The Core of the Dispute: Denied Insurance Coverage

The complaint targets top insurers, including:

• New York Marine and General Insurance Company

• QBE Insurance Corporation

• Certain underwriters at Lloyd’s of London

According to the filing, these companies sold policies promising legal coverage for defamation and related claims — but refused to defend or reimburse Wayfarer and its executives after being notified of Lively’s lawsuit.

“The Insurers ignored their duty to defend… then denied coverage, breaching their duties,” the complaint states, accusing them of breach of contract and tortious bad faith.

Wayfarer claims it has been footing the bill for its own defense, including legal fees for Baldoni, Sarowitz, and CEO Jamey Heath, and now seeks compensatory, consequential, and punitive damages.

Background: The Lively Lawsuit and the Insurance Fallout

Blake Lively’s lawsuit, filed in late 2024, alleges sexual harassment, retaliation, and defamation tied to the production of the film “It Ends With Us”, which she stars in and Baldoni directed. She also claims she was targeted with threats and intimidation — including an alleged vow by Sarowitz to spend $100 million to “ruin” her reputation.

That suit has since expanded to include Ryan Reynolds, Lively’s publicist, and even The New York Times, but Baldoni’s own $400 million countersuit was dismissed earlier in June.

Adding further complexity, Harco National Insurance Company filed a federal lawsuit on July 21 seeking a declaratory judgment that it does not owe Wayfarer any coverage, citing alleged policy violations, including a failure to disclose complaints of harassment during the film’s pre-production phase.

Mounting Legal Costs and Shifting Legal Teams

While Baldoni and Wayfarer are usually represented by powerhouse attorney Bryan Freedman, this new insurance suit is being handled by McGuireWoods LLP. This suggests a strategy shift as the financial burden of the East Coast lawsuit mounts — and the insurance companies dig in.

The Wayfarer team formally disputed the insurers’ denial in a July 28 letter, reiterating their right to coverage and demanding reimbursement for legal expenses already incurred.

“They are entitled to be reimbursed for all such defense fees and costs they have paid,” the suit insists.

What’s at Stake

Although no specific monetary amount is cited in the California complaint, legal observers note that defending multiple executives in a high-stakes harassment and defamation trial—especially one involving Hollywood A-listers—could cost millions. And with a trial date of March 9, 2026, in Judge Lewis Liman’s courtroom, this insurance dispute may still be unresolved by then, potentially affecting trial strategy and resourcing.

Meanwhile, all parties involved — from Lively and Reynolds to the insurers and the media — are keeping tight-lipped for now. But with reputations, finances, and precedent on the line, this legal saga shows no signs of slowing.