The St. Petersburg (Fla.) Times said Hogan, whose real name is Terry Bollea, is accusing the insurance company of failing to advise him to take out an umbrella policy that would have protected his net worth following his son Nick's 2007 car crash, which seriously injured his son's friend, John Graziano.
"The layman's way to put it is, this is broker malpractice," Hogan's attorney Wil Florin told the newspaper.
The lawsuit reportedly says while Hogan had third-party auto liability insurance with a $250,000 limit per person injured, Wells Fargo neglected to suggest Hogan take out an umbrella policy to protect his assets.
"He delegated all of that to the trust of his insurance broker," Florin said.
Hogan recently paid a confidential settlement in a lawsuit brought against him by the Graziano family and is seeking to reimbursement for the money he was "unnecessarily required to pay as a result of the defendant's negligence," the Times quoted Florin's law firm as saying.