Carriage and Insurance Paid to (CIP)

Carriage and Insurance Paid To is an incoterm where freight and insurance costs are the seller's responsibility until all goods are delivered to the buyer's carrier at a predetermined location.

What is Carriage and Insurance Paid to (CIP) ?
Carriage and Insurance Paid To is a term used to describe when a seller pays all the freight and insurance costs until the goods are delivered to the buyer's carrier at an agreed-upon location. However, under CIP, the seller can only obtain insurance on the minimum coverage, and the buyer is responsible for any additional transportation costs along with duties and taxes. The responsibility of the loss or damage to the goods being transported gets transferred from the seller to the buyer as soon as the goods are delivered to the buyer's carrier.