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CIF
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CIF or Cost, Insurance and Freight (agreed port of destination)This incoterm specifies that the seller (shipper) must pay the cost of freight and insurance for the transport of the goods to the port of destination in question. The risk of cargo damage or loss, transfers from seller to buyer (consignee) once the cargo is loaded on board the vessel in the load port. The difference with CFR is that the seller is obliged to take an insurance to protect the interest of the buyer. However take into account that there is no prescription on what kind of insurance this needs to be. Often this insurance is not a complete insurance to cover full cargo loss. It's best that the buyer makes sure the goods are insured correctly. This incoterm can be used only for transport by sea or inland shipping.
