CIP — Carriage and Insurance Paid To
When the goods are handed to the first carrier, as with CPT.
The insurance position
The seller must take out cargo insurance at its own cost, at a minimum of ICC (A), 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 handed to the first carrier, as with CPT.
Where cost passes
At the named destination.
What a broker would tell you
Incoterms 2020 raised the CIP minimum from Clauses (C) to Clauses (A). If your contract predates 2020 or incorporates the 2010 edition, the minimum is still (C) — check which edition the contract names, because the rules do not update themselves.
The mistake that gets made
Buyers accept the certificate without checking the clause level and the sum insured. Ask for the certificate before shipment, not after a loss.
Other rules for any mode
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.