Carriage and Insurance Paid To (CIP) is an incoterm that means a seller pays freight and insurance to deliver goods to a seller-appointed party at an agreed-upon location. The risk of damage or loss to the goods being transported transfers from the seller to the buyer as soon as the goods are delivered to the carrier or appointed person. CIP is comparable, but different to Cost, Insurance, and Freight (CIF).The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIP, the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, they will need either to agree to that expressly with the seller or make other extra insurance arrangements.
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