DAP — Delivered at Place
At the named destination, with the goods on the arriving conveyance ready for unloading.
The insurance position
Nobody is obliged to insure under DAP. The rule allocates cost and risk, and stops there. Whoever bears the risk over a leg of the journey is the party with something to lose on it.
The seller carries risk for the entire journey, including a leg in a country where they may have no presence and no ability to inspect or mitigate.
Where risk passes
At the named destination, with the goods on the arriving conveyance ready for unloading.
Where cost passes
Same point, excluding import clearance and duties.
What a broker would tell you
Sellers on DAP are the ones who need the cover, and they need it to run to the named place — not to the port of discharge.
The mistake that gets made
Sellers buy port-to-port cover for a door-to-door obligation and discover the gap at the inland leg, which is where a large share of damage happens.
Who is exposed
The seller carries risk for the entire journey, including a leg in a country where they may have no presence and no ability to inspect or mitigate.
Where a seller has sold on terms that put the risk on the buyer and payment has not been received, seller's interest cover is the usual fallback — it responds when the buyer turns out not to have insured.
Seller's interest cover →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.