# CIF (Cost, Insurance and Freight)

*Last updated: 2026-06-26*

> CIF – Cost, Insurance and Freight – gives the buyer a single delivered price covering ocean freight and a minimum level of cargo insurance to the named destination port, with the seller arranging and paying for both.

CIF – Cost, Insurance and Freight – gives the buyer a single delivered price covering ocean freight and a minimum level of cargo insurance to the named destination port, with the seller arranging and paying for both. Risk, however, passes at the port of shipment the moment goods are on board: any loss or damage occurring at sea falls on the buyer, even though the seller is still paying the freight bill. That cost-risk split is what sets CIF apart from CIP (Carriage and Insurance Paid To), where risk transfers at the first carrier and the seller must provide significantly broader insurance cover. CIF applies exclusively to sea and inland waterway transport and is governed by the ICC Incoterms 2020 rules. The minimum insurance required aligns with Institute Cargo Clauses (C) – a basic level that excludes many common perils. Buyers of high-value or sensitive cargo should assess whether additional marine insurance cover is warranted.

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

## Quick Facts

| Property | Value |
|---|---|
| Term | CIF (Cost, Insurance and Freight) |
| Language | EN |
| Word count | 155 |
| Last updated | 2026-06-26 |
| Source | https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/ |

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