CIP (Carriage and Insurance Paid)

Carriage and Insurance Paid (CIP) is an official shipping term used in procurement transactions. It indicates that the seller is responsible for arranging transport of the goods to a specified destination, and also assumes the risk of loss or damage to the goods during transit. The seller also covers all necessary insurance costs associated with sending the goods. In this way, CIP ensures that both parties are provided with clarity on who pays for what in regards to the delivery of goods.