CIF, Cost, Insurance and Freight

Under CIF Incoterms, the seller pays to bring the goods to the named port of destination, but the risk of loss or damage and any costs relating to the goods while in transit pass to the buyer once the goods are on board the vessel. Seller must also contract for insurance against the buyer’s risk of loss of or damage to the goods during carriage. (For a complete list of Incoterm definitions including a chart of buyer and seller responsibilities, see Universal’s Incoterms 2010.)