What does Carriage and Insurance Paid To (CIP) mean?

CIP is CPT with insurance built in. The seller pays freight to the named destination and must also take out cargo insurance - at a minimum of 110% of invoice value under Institute Cargo Clauses (A), the most comprehensive level available.

Risk still transfers to you at handover to the first carrier, as with CPT. But unlike CPT, you don't need to arrange your own cover - the seller is contractually required to provide it.

CIP has become the preferred Incoterm for containerised shipments in many modern coffee contracts, replacing the older CIF. If you're seeing it on offer sheets from European importers, it's a sign you're dealing with someone using up-to-date trade terms - and that your coffee is properly insured during transit.