Incoterms
CIF (Cost, Insurance and Freight)
Sea-only Incoterm under which the seller pays freight and minimum insurance to the destination port; risk passes once goods are on board.
In four languages
CIF works like CFR, with one addition: the seller must buy cargo insurance for the buyer's benefit, at least 110% of the contract value. The required cover is only Institute Cargo Clauses (C), the narrowest standard cover, unless the contract asks for more. Risk still passes when the goods are on board in China, so if a container is lost at sea on a CIF Jebel Ali shipment, the buyer bears the loss and claims on the seller's policy. Destination charges are for the buyer unless included in the freight. Example: a Dubai buyer agrees CIF Jebel Ali with ICC (A) cover written into the contract. When the 2026 Hormuz disruption leads the carrier to discharge at Khor Fakkan, the buyer checks that the policy still covers the cargo on the onward road leg.
Questions
Does CIF mean the seller is responsible until the goods arrive?
No. The seller pays freight and insurance, but risk passes to the buyer when the goods are loaded on board at origin.
What insurance does CIF include?
At least Institute Cargo Clauses (C) at 110% of the value. Buyers who want all-risks cover should agree ICC (A) in the contract.