Carriage and Insurance Paid To (CIP)
Carriage And Insurance Paid To (CIP) is a commercial term indicating that the seller delivers the goods to a carrier or to another person nominated by the seller, at a place mutually agreed upon by the buyer and seller, and that the seller pays the freight and insurance charges to transport the goods to the specified destination. “Carriage and Insurance Paid to” (CIP) means that although the seller pays for freight and insurance, the risk of damage or loss to the goods being transported is transferred from the seller to the buyer as soon as the goods have been delivered to the carrier. While the seller is responsible for insuring the shipment, this obligation only extends to the minimum level of insurance coverage. If the buyer desires additional insurance, such extra coverage will have to be arranged by the buyer.