CIP, Carriage and Insurance Paid

Under CIP Incoterms, the seller pays to bring the goods to the named place of destination, but the risk of loss or damage and any costs relating to the goods while in transit pass to the buyer once the goods are handed over to the carrier. Seller must also contract for insurance against the buyer’s risk of loss of or damage to the goods during carriage. (For a complete list of Incoterm definitions including a chart of buyer and seller responsibilities, see Universal’s Incoterms 2010.)