CIP Carriage and Insurance Paid to
In Incoterms CIP, the seller has the same obligations as under CPT (Carriage Paid to) terms, but with the addition that the seller has to procure cargo insurance against the buyer´s risk of loss, or damage the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is only required to obtain insurance on minimum coverage. The CIP term requires the seller to clear the goods for export. This term may be used for any mode of transport including multimodal transport. See Incoterms for a list of the eleven Incoterms. Practical Guide to Incoterms.