DDP — Delivered Duty Paid
At the named destination, ready for unloading, cleared for import.
The insurance position
Nobody is obliged to insure under DDP. 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 maximum obligation on the seller of any rule. Risk, cost, clearance and duty, all the way to the buyer's door.
Where risk passes
At the named destination, ready for unloading, cleared for import.
Where cost passes
Same point, including duties and import clearance.
What a broker would tell you
Insure to the door, and insure the duty. Where duty has been paid and the goods are then lost, the duty is lost too unless the sum insured includes it.
The mistake that gets made
Sellers insure the invoice value and forget that under DDP they have also paid the import duty, which is part of what is at risk.
Who is exposed
The maximum obligation on the seller of any rule. Risk, cost, clearance and duty, all the way to the buyer's door.
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.