Carriage & Insurance Paid To (CIP):
Further information
This rule and CIF (Cost Insurance and Freight) are the only two rules that place an obligation on the seller to arrange insurance for the consignment.
Note that this insurance covers the buyer’s risk, because risk will pass from the seller to the buyer before the main carriage.
Important: The Incoterms 2010 and Incoterms 2020 revisions differ here in the minimum level of insurance cover that must be provided – click here for more
As with the other “C” rules, a good choice for transactions involving letters of credit.
Click here for an explanation