Carriage and Insurance Paid To (CIP)

Carriage and Insurance Paid To (CIP) is an Incoterm where the seller arranges and pays for transportation and insurance coverage up to a named place. The risk transfers to the buyer once the goods are handed over to the first carrier.

In CIP, the seller covers:

• Transportation costs to the named place
• Insurance coverage for the goods

The buyer assumes risk after the goods are handed to the first carrier. Examples include:

• Shipping from a factory to a port
• Transporting from a port to a warehouse

CIP is used in various modes of transport, including:

• Sea freight
• Air freight
• Rail transport
• Road transport