Sourcing glossary
CIP
Also known as: Carriage and Insurance Paid To
An Incoterm for any mode of transport under which the seller pays carriage and cargo insurance to a named destination, while risk passes to the buyer when the goods are handed to the first carrier.
CIP is the multimodal counterpart of CIF and suits air freight, rail and containers handed over at an inland terminal. Under Incoterms 2020 the seller must buy a higher level of cover than under CIF: insurance complying with Institute Cargo Clauses (A), the "all risks" level, for at least 110% of the contract value, unless the parties agree otherwise.
Check that the policy lets you claim directly and that it covers the whole route to the named place. As with CPT, the seller pays for carriage beyond the point where the risk has already passed to you. See CIF vs FOB for how the C-terms work in practice.
Related terms
Guides that use this term
Trade terms
CIF vs FOB: Which Is Better When Importing from China?
CIF vs FOB under Incoterms 2020: who books freight, what CIF insurance really covers, where risk passes, and why CIF can cost more once goods reach your port.
Updated 2026-09-16 · 5 min read
Trade terms
How to Pay Chinese Suppliers Safely: T/T, L/C, Trade Assurance and More
Compare the ways to pay a Chinese supplier: T/T bank transfer, deposit terms, letters of credit, Trade Assurance, PayPal and Wise, plus how to stop bank-detail fraud.
Updated 2026-09-06 · 7 min read
Part of Incoterms & Payment.