In a cost insurance freight contract, who is responsible for risks during delivery?

In a cost insurance freight (CIF) contract, the seller takes on the responsibility for the risks during delivery. This means that the seller is obligated to cover not only the cost of shipping the goods but also to procure insurance to protect against any potential losses or damages that might occur during transit. By agreeing to a CIF arrangement, the seller undertakes the risk associated with loading, transporting, and insuring the goods until they reach the destination port.

Under CIF terms, the seller's duties are more extensive than in other shipping terms where the risks may shift to the buyer at different points of the transaction. The inclusion of insurance as part of the seller's obligations reflects a comprehensive approach to risk management, ensuring that the buyer receives their goods in good condition, rather than placing that burden solely on the buyer once the goods are en route. This not only protects the buyer but also provides a level of assurance that the seller is invested in the successful transfer of the goods.