Incoterms Rules
CIP — Carriage and Insurance Paid To
Similar to CPT, CIP (Carriage and Insurance Paid To) also includes insurance coverage provided by the seller. Unlike CIF, it requires a higher level of insurance coverage. This makes CIP safer for the buyer, especially in multimodal transportation.
Who does what
| Transport | Any mode |
|---|---|
| Export clearance | Seller |
| Import clearance | Buyer |
| Main carriage paid by | Seller |
| Insurance | Seller, broad cover |
| Risk passes to the buyer | When the goods are handed to the first carrier |
When to use it
CPT plus insurance paid by the seller: a safer choice for the buyer on multimodal and container shipments.
What to watch
Since Incoterms 2020 the seller must insure at the broad level, Institute Cargo Clauses (A), unlike CIF where the minimum level (C) applies. Risk still passes at handover to the first carrier.