Incoterms 2020
CIP, Carriage and Insurance Paid To
CPT plus insurance. Since the 2020 revision the seller must provide all risks cover rather than the minimum, which makes this a genuinely protective rule for the buyer.
- Group
- C
- Mode
- Any mode of transport
CIP works exactly like CPT, with one addition: the seller must also arrange insurance for the buyer’s benefit. Risk still passes at the first carrier and the seller still pays carriage to the named destination, but now the buyer has a policy to claim against if something happens in between.
The 2020 revision raised the insurance requirement significantly. CIP now demands cover at Institute Cargo Clauses A level, which is all risks, where the previous version only required the minimum Clause C. That change makes CIP meaningfully better protection than CIF, which still sits at the minimum level.
The seller is responsible for
- Clear the goods for export
- Contract and pay for carriage to the named destination
- Arrange all risks insurance for at least 110 percent of the contract value
- Deliver to the first carrier and provide the insurance policy
The buyer is responsible for
- Bear risk from the first carrier onward, protected by the policy
- Pay unloading at destination unless the carriage contract covers it
- Handle import clearance, duty and taxes
Risk transfers
When the goods are handed to the first carrier, as with CPT.
Costs transfer
At the named destination, with insurance covering the gap between the two.
Best used for
Valuable or fragile goods where the buyer wants delivered pricing and genuine insurance protection.
Watch out for
The 110 percent minimum is exactly that, a minimum. Agree a higher sum in the contract if the goods warrant it.
Related services
Tell us what you need to move.
Send the supplier city or port of loading, the volume and weight, and the date the goods are ready. We will come back with a landed cost and a realistic transit time, usually within one working day.