Is CIP for any mode of transport?

Yes. CIP works for any mode and for multimodal shipments.

What insurance level applies under CIP?

Under modern practice, CIP requires the seller to arrange a higher level of cargo insurance for the buyer’s benefit, typically “all risks” style cover unless otherwise agreed.

When does risk transfer under CIP?

Risk transfers when the goods are handed to the first carrier at origin, even though the seller is paying carriage and insurance to the named place.

Does CIP suit container shipments?

Yes. CIP aligns well with container and multimodal moves because the practical handover point is to the first carrier or terminal.

What documents are typical with CIP?

Commercial Invoice, Packing List, transport documents (e.g., waybill or bill of lading) and an insurance certificate/policy assignable to the buyer.

CIP (Carriage and Insurance Paid To) | Any Mode, Insurance Included, Risk Point

Q: What does CIP mean?

Carriage and Insurance Paid To means the seller pays the carriage to a named place and also provides cargo insurance for the buyer’s benefit. Risk transfers to the buyer when the goods are handed to the first carrier.

Last updated: 18 August 2025

What is CIP?

CIP (Carriage and Insurance Paid To) means the seller pays the transport costs to a named place and also provides cargo insurance for the buyer’s benefit. Risk transfers to the buyer when the goods are handed to the first carrier. CIP works for any mode and is widely used for container and multimodal moves.

Risk and responsibility

Task	Party	Notes
Export packing and documentation	Seller	Commercial Invoice and Packing List
Export clearance	Seller	Seller files the export declaration
Handover to first carrier (risk)	Seller → Buyer (risk)	Risk transfers at this point
Main carriage to named place (costs)	Seller (costs) / Buyer (risk)	Seller pays freight; buyer carries risk post-handover
Cargo insurance for buyer	Seller	Higher cover by default; specify scope and insured value in contract
Import clearance, duties and delivery	Buyer	At destination country

When to use CIP

Container or multimodal shipments where early carrier handover is practical.
Transactions where the buyer wants the seller to include cargo insurance.

Notes and alternatives

For the same structure without insurance, use CPT.
For sea only with seller-paid freight and insurance, see CIF.
For seller handover to buyer’s carrier without paying freight, consider FCA.
For road across certain countries, the consignment note is CMR.

How Clintopia helps

We arrange carrier bookings, compliant insurance certificates and export entries under CIP. For full planning, see Freight Forwarding. For tariff codes and border entries, see Customs Clearance. For UK terminal or port collections to site, see Container Haulage. For ocean legs, see Sea Freight.

Seller pays carriage and provides insurance; risk transfers at first carrier

CIP (Carriage and Insurance Paid To)

CIP (Carriage and Insurance Paid To)

What is CIP?

Risk and responsibility

When to use CIP

Notes and alternatives

How Clintopia helps

Related terms

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CIP — FAQs