CIF — Cost, Insurance and Freight
When the goods are on board at the port of shipment.
The insurance position
The seller must take out cargo insurance at its own cost, at a minimum of ICC (C), for at least 110% of the contract value, in the currency of the contract, and provide the buyer with the policy or certificate so that the buyer can claim directly.
A minimum is a floor, not a recommendation. Nothing stops the parties agreeing a higher clause level or a larger sum in the sale contract, and on most cargo they should.
Where risk passes
When the goods are on board at the port of shipment.
Where cost passes
At the named port of destination.
What a broker would tell you
Clauses (C) is the narrowest standard cover there is: no theft, no non-delivery, no handling damage, no fresh or rain water. If you are buying CIF and you want real protection, specify a higher clause level in the sale contract — the rule sets a floor, not a ceiling.
The mistake that gets made
Believing that CIF means the goods are fully insured. It means they are minimally insured, and Incoterms 2020 deliberately left CIF at (C) while raising CIP to (A).
Other rules for sea and inland waterway
Sources
Incoterms® is a registered trademark of the International Chamber of Commerce. This page summarises the insurance consequences of the rule; the ICC publication is the rule.
This page summarises the instruments above. It is not the wording, and it is not legal advice. Where a summary conflicts with a convention text, a policy wording or a certificate, that document governs.
InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.