Glossary term
CIP
Incoterms rule: the seller pays carriage and insurance to a named destination, with risk passing at first-carrier handover.
Carriage and Insurance Paid To. The seller contracts and pays for carriage to the named destination and insures the goods, but risk passes when the goods are handed to the first carrier, which may be far inland from any port.
CIP works for any mode, including containerised sea freight, which is why it is the appropriate choice where CIF is often used by habit. Under Incoterms 2020 CIP requires a higher default level of insurance cover than CIF - a difference worth checking rather than assuming.