Carriage and Insurance Paid To
Any transport modeLike CPT, but the seller also buys all-risk insurance (Institute Cargo Clauses A) for the buyer. Risk still transfers at handover to the first carrier.
Written as: CIP [named place of destination]
Carriage and Insurance Paid To
CPT plus all-risk insurance
Hover a stage to see who is responsible.
Cost and risk split here
With CIP, the seller pays for carriage all the way to destination, but risk passes to the buyer at Inland to origin port. The buyer should insure the goods from that point.
| Stage | Who pays | Who's at risk |
|---|---|---|
| Export packaging | Seller | Seller |
| Loading at origin | Seller | Seller |
| Inland to origin port | Seller | Buyer |
| Export customs | Seller | Buyer |
| Origin terminal charges | Seller | Buyer |
| Loading on main carrier | Seller | Buyer |
| Main carriage (freight) | Seller | Buyer |
| Destination terminal charges | Buyer | Buyer |
| Import customs & duty | Buyer | Buyer |
| Inland to destination | Buyer | Buyer |
| Unloading at destination | Buyer | Buyer |
Seller's responsibilities
- Contract carriage to destination
- Buy all-risk (ICC A) insurance
Buyer's responsibilities
- Bear risk from handover to the first carrier
- Pay import, duties, and destination costs
Risk transfer
Under CIP, the risk of loss or damage passes from the seller to the buyer at Inland to origin port.
With CIP, the seller pays for carriage all the way to destination, but risk passes to the buyer at Inland to origin port. The buyer should insure the goods from that point.
Insurance
Seller — all-risk cover (ICC A)
When to use it
High-value or multimodal shipments where the buyer wants the seller to provide comprehensive insurance.
Watch out
Since Incoterms 2020, CIP requires all-risk (ICC A) cover — a higher level than CIF’s minimum.
Frequently asked
- Is CIP insurance better than CIF?
- Yes, in cover level: CIP requires all-risk (ICC A), while CIF requires only minimum (ICC C).