The same as CF, with the cargo covered
CIF — Cost, Insurance and Freight
The cost of the goods, the freight and the cargo insurance are all billed to you, so a loss in transit is covered rather than argued about.
What this term covers
CIF is CF with the insurance included. You pay for the goods, for the carriage to the destination port, and for a policy covering the cargo while it is in transit.
It is the term we recommend to anyone who has not deliberately decided otherwise. Insurance is a small percentage of the value of the goods, and the alternative is relying on carrier liability, which is capped by weight rather than by what the cargo is worth. On a container of anything valuable, the difference is not close.
Included under this term
- Cost of the goods, freight and cargo insurance in one arrangement
- Carriage arranged to the destination port you name
- Cargo covered against loss and damage while in transit
- Policy details confirmed in writing before the goods sail