GlossaryEN1 min readUpdated: Jun 13, 2026

CIF insurance coverage

Under the CIF Incoterm (Cost, Insurance and Freight), the seller must obtain marine insurance and bear its cost.

Last updated: 13 June 2026Published: 27 January 2026

Source: https://iccwbo.org/resources-for-business/incoterms-2020/

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Under the CIF Incoterm (Cost, Insurance and Freight), the seller must obtain marine insurance and bear its cost. The coverage must meet at least the Institute Cargo Clauses (ICC-A, -B, or -C) standard or an equivalent agreement and protects against total loss, partial loss, and damage during carriage to the named port of destination. The buyer is named as beneficiary on the policy and may claim directly against the insurer in case of loss. In practice, the choice of clauses is often negotiated; ICC-A provides the broadest protection but commands higher premiums, while ICC-C is more limited and economical.

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