CIP — Carriage and Insurance Paid To

Mode of transport

Any mode

Definition

As CPT, but the seller must additionally contract cargo insurance for the buyer's benefit. Under Incoterms 2020 the required cover for CIP was raised to all-risks level (Institute Cargo Clauses (A) or similar).

Delivery point

On handover to the first carrier in the country of dispatch.

Risk transfer

On handover to the first carrier; the insurance protects the buyer from that point to the named destination.

Seller costs

• Everything under CPT
• Cargo insurance at minimum 110% of the contract value in the contract currency, ICC (A) level cover

Buyer costs

• Import clearance and duties
• Additional cover (war, strikes) if requested — at the buyer's cost
• Costs after the named destination

Insurance

Mandatory for the seller: all-risks cover, minimum 110% of the invoice value, payable to the buyer, valid until the named place of destination.

Export formalities

Seller's responsibility and cost.

Import formalities

Buyer's responsibility and cost.

Documents

• Commercial invoice, packing list
• Transport document
• Insurance policy or certificate transferable to the buyer

Best use cases

High-value or fragile cargo shipped multimodally where the buyer wants insurance arranged at origin.

Common mistakes

• Buying only ICC (C) cover — insufficient for CIP under Incoterms 2020
• Insuring to the wrong destination point
• Assuming insurance means the seller bears transit risk

Practical example

CIP Warsaw, Incoterms® 2020.