Carriage and Insurance Paid To
Like CPT, but the seller also buys all-risks insurance covering the main carriage.
CIP means the seller pays carriage and insurance to the named destination. Risk still transfers at the first carrier — the insurance is there to cover the buyer during the main carriage.
Under Incoterms 2020, CIP requires the seller to buy all-risks insurance (ICC (A) or equivalent), up from the minimum cover required in Incoterms 2010. This aligns CIP with most modern trade practice.
CIP is the multimodal sibling of CIF. Prefer CIP for containerised and air freight; use CIF only for bulk sea shipments.
Who is responsible for what
- Cost
- Seller pays freight and insurance to the named destination.
- Risk
- Transfers to the buyer at the first carrier.
- Insurance
- Seller provides all-risks cover (ICC Institute Cargo Clauses A).
- Duties
- Seller for export, buyer for import.
When to use
Buyer wants the seller to arrange full insurance coverage on the main carriage.
Transport modes
air, sea, road, courier
FAQ
- What insurance level does CIP require under Incoterms 2020?
- All-risks cover — ICC Clauses A. This is a change from Incoterms 2010, which required only minimum cover.
Create a CIP invoice
Start the wizard with CIP pre-selected. Takes about a minute.
Start with CIP