Does FOB include insurance?

Does FOB include insurance?

Under FOB contracts, the buyer is responsible for shipping and other costs, as well as insurance as soon as the goods are loaded onto the vessel and during the voyage.

What are the responsibilities of FOB?

Free on Board, or FOB is an Incoterm, which means the seller is responsible for loading the purchased cargo onto the ship, and all costs associated. The point the goods are safe aboard the vessel, the risk transfers to the buyer, who assumes the responsibility of the remainder of the transport.

Who is liable in FOB contract?

Key Takeaways. Free on board (FOB) is a trade term used to indicate whether the buyer or the seller is liable for goods that are lost, damaged, or destroyed during shipment. Free on board shipping point indicates that the buyer takes responsibility for loss or damage the moment the goods get to the shipper.

Who should hold the insurance policy under CIF?

Therefore, CIF shipments are insured under the seller’s ocean cargo policy. (This is one of only two INCOTERMS which contains an obligation to provide insurance.