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CIP risk transfer | Freight-Academy™

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GlossaryEN1 min readUpdated: Jun 13, 2026

CIP risk transfer

Under CIP (Carriage and Insurance Paid To), risk transfers from seller to buyer when the goods are handed over to the first carrier at the place of shipment – not at the destination.

Quick Answer

Under CIP (Carriage and Insurance Paid To), risk transfers from seller to buyer when the goods are handed over to the first carrier at the place of shipment – not at the destination.

Although the seller arranges and pays for transport insurance up to the named destination, the buyer bears the loss or damage risk from handover onwards.

This early risk transfer is a defining feature of CIP and sets it apart from CIF (where risk passes at the port of shipment for sea transport) or CPT (where costs and risk align).

Last updated: 13 June 2026Published: 27 January 2026

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

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Definition & Explanation

Under CIP (Carriage and Insurance Paid To), risk transfers from seller to buyer when the goods are handed over to the first carrier at the place of shipment – not at the destination. Although the seller arranges and pays for transport insurance up to the named destination, the buyer bears the loss or damage risk from handover onwards. This early risk transfer is a defining feature of CIP and sets it apart from CIF (where risk passes at the port of shipment for sea transport) or CPT (where costs and risk align).

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Recommended format: Source: Freight Academy – CIP risk transfer (https://www.freight-academy.com/en/glossary/cip-risk-transfer), accessed 2026-09-14
APA style: Freight Academy Editorial Team. (2026). CIP risk transfer. Freight Academy. https://www.freight-academy.com/en/glossary/cip-risk-transfer
BibTeX: @misc{ciprisktransfer2026, title = {CIP risk transfer}, author = {{Freight Academy Editorial Team}}, year = {2026}, url = {https://www.freight-academy.com/en/glossary/cip-risk-transfer}, note = {Freight Academy, accessed 2026-09-14} }

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