Cost, Insurance and Freight
Like CFR, plus the seller must buy cargo insurance for the buyer's benefit. Risk still passes on board at origin. Sea and inland waterway only.
When to use it
CIF is one of the most widely used and widely misunderstood rules: the seller pays freight and buys minimum-cover insurance to the destination port, useful for buyers who want a landed, insured price without arranging cover themselves. It is a sea and inland waterway rule only.
The common mistake
Assuming CIF insurance covers the buyer generously. Incoterms 2020 keeps CIF's insurance obligation at minimum cover (Institute Cargo Clauses C) unless the contract says otherwise; a buyer who wants broader cover should negotiate it explicitly or insure separately.
Risk transfers
after Loading onto main carriage, from seller to buyer.
See the full responsibility matrix
Compare all 11 Incoterms 2020 rules side by side, interactively.
Incoterms is a registered trademark of the International Chamber of Commerce (ICC). This is an educational summary, not the official rules. For the binding text, see the ICC Incoterms 2020 publication.
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