CIP (Carriage and Insurance Paid To)
CIP works like CPT, but the seller must also insure the cargo for the buyer. Under Incoterms 2020, CIP requires cover equivalent to Institute Cargo Clauses (A), broad all-risks cover subject to exclusions, for at least 110% of the contract value. That differs from CIF, which still requires only clause (C) as a minimum. CIP suits containers, air cargo and high-value goods. The parties may agree a lower level of cover in writing.
Related terms
- CPT (Carriage Paid To)
Carriage Paid To means the seller pays transport to the named destination, but risk passes to the buyer when the goods are handed to the first carrier.
- CIF (Cost, Insurance and Freight)
CIF works like CFR, but the seller must also take out cargo insurance for the buyer, at least at Institute Cargo Clauses (C) level and for at least 110% of the contract value.
- Institute Cargo Clauses (ICC A, B, C)
The Institute Cargo Clauses are the London market's standard wordings for cargo policies, with the 2009 edition the most widely used.
- Insured Value
Insured value is the amount agreed in the policy as the basis for indemnity.