We are selling to a UK customer using an Incoterms® 2010 Rule Carriage & Insurance Paid (CIP) to their premises. We contract for carriage with the haulier who delivers to the UK customer for us. We have had a recent incident where during delivery a binding brake on the delivery vehicle caused a small fire on one of the road barrel axles, the incident was easily dealt with and the fire was extinguished but I just wondered what would have happened if the fire had caused damage to the customer’s premises in addition to damaging/destroying the cargo? Would the damage to the premises be covered by the insurance we provide under CIP? Would the UK customer have a direct claim with the haulage company we’d chosen under their public liability insurance?

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