CIF

The respective duties of seller and buyer are the same as for CFR contracts, with the addition of the insurance coverage. The additional obligations are the following: 


Seller must:

• Contract at owner expense with an insurance company, a transferable insurance coverage for the risks, duration and journey specified in the contract of sale or accepted purchase order (NOTE: it is advisable that buyer includes in the solicitation document and in the contract, a provision for additional coverage at seller’s expense, i.e. Institute Cargo Clauses A); and
• Provide the insurance policy or certificate together with B/L and other documents, for the buyer to receive them in time for collection of the goods upon arrival. NOTE: the seller buys insurance on behalf of the buyer.

Buyer must:

• Bear supplementary expenses of insurance against risks requested that the seller cover, and 
which were not included in the contract of sale; and
• Do their work in connection with an insurance claim.