Margarida Lima Rego: Insurance Requirements in Incoterms® 2020

Under Incoterms® 2010 Rules, as in prior editions of these Rules, CIF and CIP clauses set forth a duty to insure requiring the seller to insure the goods under Institute Cargo Clauses (C) of the Institute of London Underwriters. Under Incoterms® 2020 Rules, the International Chamber of Commerce upgraded the default level of insurance coverage required on the goods under CIP, while maintaining the previous default level of insurance coverage required on goods sold under CIF. The former, but not the latter, now points towards the use of Institute Cargo Clauses (A). This chapter aims to identify and assess the legal and commercial implications of this change, under the framework of the United Nations Convention on Contracts for the International Sale of Goods.