CIF or Cost, Insurance and Freight (agreed port of destination). This Incoterm specifies that the seller (shipper) must pay the cost of freight and insurance for the transport of the goods to the port of destination. The risk of cargo damage or loss, transfers from seller to buyer (consignee) once the cargo is loaded on board the vessel in the load port. The difference with CFR is that the seller is obliged to take out insurance, to protect the interest of the buyer. It is important to note though, that the type of insurance is not specified by the Incoterm. So quite often the shipper settles for a limited liability policy. It is in the buyer's best interest to take out proper insurance. This Incoterm can be used only for transport by sea or inland shipping.