# Liability delimitation Incoterms

*Last updated: 2026-06-19*

> Unlike individually negotiated contract clauses, Incoterms provide a standardised, binding framework that determines exactly where transport risk and cost responsibility shift from seller to buyer.

Unlike individually negotiated contract clauses, Incoterms provide a standardised, binding framework that determines exactly where transport risk and cost responsibility shift from seller to buyer. This delimitation defines who bears liability for loss, damage, or delay—and therefore who must arrange transport insurance and who has standing to claim against carriers. Under FOB, the seller's risk ends when goods are loaded on board the vessel; under CIF, risk transfers earlier, yet the seller is still required to procure minimum insurance coverage, a combination that frequently causes confusion in practice. Sound knowledge of these boundaries is indispensable for price negotiations, insurance planning, and resolving disputes.

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

## Quick Facts

| Property | Value |
|---|---|
| Term | Liability delimitation Incoterms |
| Language | EN |
| Word count | 103 |
| Last updated | 2026-06-19 |
| Source | https://iccwbo.org/business-solutions/incoterms-rules/ |

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