GlossaryEN1 min readUpdated: Jun 13, 2026

risk transfer moment

The risk transfer moment marks the point at which liability for loss or damage to goods shifts from seller to buyer.

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Last updated: 13 June 2026Published: 27 January 2026

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

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Incoterms 2020 Simulator: Who bears costs & risk?

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Definition & Explanation

The risk transfer moment marks the point at which liability for loss or damage to goods shifts from seller to buyer. From this moment on, the buyer bears the financial consequences of any damage, regardless of possession. The exact moment is determined by agreed Incoterms (e.g., EXW, FOB, CIF, DDP) or explicit delivery terms in the sales contract. Unlike ownership transfer, risk transfer concerns only economic liability – a buyer may bear risk without holding title. For freight forwarders and insurers, this timing is critical for correctly allocating liability and insurance claims.

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risk transfer moment

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