Is CIF insurance enough?

CIF only requires minimum cover (ICC Clauses C). For valuable cargo or finished goods, negotiate higher cover or use CIP which requires all-risks coverage.

CIFIncoterms 2020

Cost, Insurance and Freight

Seller pays freight and minimum insurance to the named destination port; risk transfers at origin.

CIF means the seller pays freight and insurance to the destination port. Risk transfers when the goods are on board the vessel at origin. CIF is sea-only; for multimodal or container freight, use CIP.

Under Incoterms 2020, CIF requires only minimum insurance cover (ICC (C)). Buyers who want higher cover should negotiate it explicitly or use CIP instead.

CIF is very common for bulk commodities and is recognised by banks for letter-of-credit transactions.

Who is responsible for what

Cost: Seller pays freight and insurance to the destination port.
Risk: Transfers at the origin port when goods are on board.
Insurance: Seller provides minimum cover (ICC Clauses C) under Incoterms 2020.
Duties: Seller for export, buyer for import.

When to use

Bulk sea freight with minimum insurance; common in commodity trading.

Transport modes

sea only

FAQ

Is CIF insurance enough?: CIF only requires minimum cover (ICC Clauses C). For valuable cargo or finished goods, negotiate higher cover or use CIP which requires all-risks coverage.

Create a CIF invoice

Start the wizard with CIF pre-selected. Takes about a minute.

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