Of the eleven current Incoterms, only CIF and CIP oblige the seller to contract insurance in favour of the buyer. In the other nine, no one is obliged, and this gap is the origin of a considerable part of the uncovered losses in international trade.
The two that oblige
CIP requires broad cover, equivalent to the Institute Cargo Clauses A of the London Insurers. CIF, reserved for maritime transport, only requires minimum cover of Clauses C, which covers much less than most buyers assume. Selling in CIF with minimum cover is technically correct and commercially risky.
Where the risk is transferred in the others
In EXW, the risk passes to the buyer at the seller's premises, even before loading. In FCA, upon delivery to the designated carrier. In DAP and DPU, it remains with the seller until the destination. The common mistake is to assume that the risk travels with ownership or payment, when these are three independent things.
The grey area of loading and unloading
Loading and unloading operations concentrate a significant portion of damages and often fall between the goods policy and the operator's civil liability. It is advisable to expressly declare them in the clauses, especially in project loads or bulky goods.
Practical recommendation
If you export regularly, your own open policy solves the problem regardless of the agreed Incoterm: you always cover your interest, issue the certificate per shipment when the buyer or their bank requires it, and stop relying on a third party to have contracted correctly.
