# Carriage And Insurance Paid To

*Last updated: 2026-06-26*

> Under CIP (Carriage and Insurance Paid To), the seller pays freight to the named destination and arranges cargo insurance in the buyer's favour – but risk already passes to the buyer upon handover to the first carrier.

Under CIP (Carriage and Insurance Paid To), the seller pays freight to the named destination and arranges cargo insurance in the buyer's favour – but risk already passes to the buyer upon handover to the first carrier. This split between cost/insurance obligation and risk transfer is the defining characteristic of CIP and often surprises buyers unfamiliar with Incoterms. Since Incoterms 2020, CIP requires coverage at the level of Institute Cargo Clauses A or equivalent, a significant upgrade from the previous minimum standard. CPT, by contrast, imposes no insurance obligation on the seller at all. In practice, freight forwarders must ensure the insurance certificate is issued and available to the buyer before shipment.

**Source:** [https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/](https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/)

## Quick Facts

| Property | Value |
|---|---|
| Term | Carriage And Insurance Paid To |
| Language | EN |
| Word count | 112 |
| Last updated | 2026-06-26 |
| Source | https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/ |

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*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/carriage-and-insurance-paid-to](https://www.freight-academy.com/en/glossary/carriage-and-insurance-paid-to)*

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