What’s the difference between CIP and CIF?
Carriage and Insurance Paid To (CIP) is a freight arrangement whereby the seller is responsible to cover the costs of both freight and insurance of the product to a destination agreed upon by the buyer.
The seller is obligated under CIP arrangements to insure the goods at 110% of the contract value and the buyer is able to purchase additional assurance if needed.
This additional fee helps mitigate or cover any inconvenience or issues arising from delays in shipment deliveries.
CIP Carriage and Insurance Paid To is similar to Cost Insurance and Freight (CIF) although CIF is used for port to port, sea transportation.