Documents & Incoterms
Cost, Insurance and Freight (CIF)
Definition
An Incoterms rule for sea or inland-waterway transport under which the seller pays carriage and specified insurance to the destination port while risk transfers at origin.
In practical terms
CIF separates cost responsibility from the point where transit risk transfers. Parties should understand the required insurance level and the named destination port.
Example
The seller books ocean carriage and insurance to the destination port, but risk transfers once the goods are on board at origin.