In insurance disputes, a deposition is a formal testimony process where parties, witnesses, or experts are questioned under oath before trial.
Although not a coverage term by itself, it becomes important because many coverage and bad-faith disputes rely on sworn fact-finding to establish insurer notice, duty to defend, and valuation assumptions.
Why insurance teams care
Claims files often include deposition excerpts to support reservation-of-rights letters, denial positions, and reserve justifications.
Example
If a claim manager says notice was received immediately after loss, but records show delayed reporting, a deposition from the adjuster can clarify notice timing and affect coverage position.