CIF (Cost, Insurance and Freight)
Definition
CIF is an Incoterms rule similar to CFR, except the seller must also procure minimum marine insurance cover for the goods during transit to the named port of destination.
Why It Matters
Under CIF the seller only needs to provide minimum insurance cover; buyers who need broader protection should arrange additional insurance themselves.
Example
A buyer requesting CIF terms should confirm the level of insurance cover included and whether it meets their needs.
Relevant Authority / Source
International Chamber of Commerce (ICC)