Incoterms and Insurance Responsibilities

Helpful Facts

  • Incoterms define who holds risk and pays for insurance at each stage of shipping.
  • Misunderstanding Incoterms can cause costly insurance gaps and denied claims.
  • EXW and FOB place most insurance responsibility on the buyer.
  • CIF requires sellers to insure, but only at minimum coverage.
  • Aligning insurance policies with Incoterms is essential to avoid liability issues.