CIP insurance sum insured | Freight-Academy™

GlossaryEN1 min readUpdated: Jun 13, 2026

CIP insurance sum insured

The insurance sum insured under CIP specifies the exact monetary limit of coverage in the transport contract.

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Last updated: 13 June 2026Published: 27 January 2026

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

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Definition & Explanation

The insurance sum insured under CIP specifies the exact monetary limit of coverage in the transport contract. It represents the maximum amount the insurer will compensate in case of total loss or damage and is typically calculated at 110% of the invoice value (goods plus freight) to cover incidental expenses and costs. The seller must ensure this sum is stated in the insurance policy and disclosed to the buyer as evidence of adequate protection.

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