Sandra Bullock Sued Over Toy Watches

Sandra Bullock is on the receiving end of a lawsuit over watches that were being hawked with her name attached.

The case may sound familiar, because Sandra herself first filed a lawsuit against ToyWatch USA, claiming the company had no right to advertise their products with her name and likeness.

Turns out ... ToyWatch has an insurance policy that MIGHT cover a judgment in case they lose in court. But the operative word is "MIGHT."

The insurance company doesn't want to wait until Sandra's case runs its course, so it filed legal docs today against Sandra, asking a judge to decide if they're on the hook in case Sandra wins.

We're guessing Sandra wants the policy to cover such a judgment, because she's probably way more likely to collect if the insurance company is required to pay.