Olive Oil Transport Insurance: Who Pays, How Much?

In brief. Transport insurance covers the oil during the journey (damage, loss, water damage, theft). Who takes it out depends on the incoterm: under CIF/CIP and beyond (DAP, DDP), it is the seller; under FOB, CFR, EXW, it is up to the buyer to cover themselves. The usual cover is 110% of the CIF value, for an indicative cost of 0.2 to 0.6% of the insured value. The certificate appears in the documentary file as soon as the sale is CIF/CIP.

On a bulk olive oil shipment, insurance is often treated lightly — until the first claim. Yet the incoterm decides who bears the risk, and an uninsured container travelling at the buyer's risk can wipe out an entire margin. Here is the rule, incoterm by incoterm.

Who must take out transport insurance?

Direct answer: it depends on the incoterm of the sale. Under CIF and CIP, the seller takes out the insurance and includes it in their price. Under DAP and DDP, the seller covers up to destination. Under FOB, CFR and EXW, the goods travel at the buyer's risk, who must take out their own policy — optional but strongly recommended.

The incoterm does not only allocate the costs: it sets the transfer of risk. Detail of each incoterm in the incoterms guide.

The table: who insures by incoterm

Incoterm	Who takes out transport insurance
EXW	The buyer (from the factory gate)
FOB	The buyer (optional but recommended)
CFR	The buyer (the seller pays the freight, not the insurance)
CIF	The seller includes it in their price
CIP	The seller includes it in their price
DAP	The seller (covers up to destination)
DDP	The seller (covers up to destination, cleared)

Classic pitfall: CFR pays the freight but not the insurance. The buyer believes they are covered and are not. Always check the letter of the incoterm.

What cover: the 110% of the CIF value

The usual cover of transport insurance is 110% of the CIF value. The extra 10% above the value of the goods covers the ancillary costs and the loss of profit in the event of a claim. This is the standard set by the CIF/CIP incoterms and expected by most banks and buyers.

Concretely, for a container with a CIF value of €80,000, you insure €88,000. This 110% base prevents the insured, once compensated, from still ending up at a loss after a claim.

Buyer side: if you buy FOB or CFR, do not count on anyone. Take out your own policy at 110% of the reconstituted CIF value. Oil is sensitive to water damage and heat: the risk is real.

How much does transport insurance cost?

The indicative cost is between 0.2 and 0.6% of the insured value, depending on the insurer, the destination and the level of cover. On a CIF value of €80,000, this represents an order of magnitude of €160 to €480. It is a modest item relative to the risk covered.

Two covers not to be confused:

• Transport insurance: covers the goods during the journey (damage, loss, water damage, theft). Taken out according to the incoterm.
• Credit insurance (COTUNACE, in Tunisia): covers the buyer's non-payment, usually at 80-90% of the receivable. Distinct from transport, it is recommended whenever a sale is not paid in advance, essential in a risky market.

Cost the impact of insurance on your landed cost with the export cost calculator.

The insurance certificate in the file

As soon as the sale is CIF, CIP or beyond, a transport insurance certificate appears in the export documentary file. It proves the cover and may be required under a documentary credit (LC). Under FOB, CFR or EXW, it is not in the seller's file since the insurance falls to the buyer.

The detail of the documents to gather is in the export documents guide, and the whole subject in the transport & packaging guide.

FAQ

Should olive oil transport be insured?

Yes, it is strongly recommended. Under CIF/CIP, the seller includes the insurance (usually 110% of the CIF value). Under FOB/CFR/EXW, the goods travel at the buyer's risk, who must take out their own policy. Oil is sensitive to water damage and heat.

Who pays the insurance under FOB?

Under FOB, transport insurance is the buyer's responsibility. The seller only covers the goods up to loading at the port of departure; after that, the risk is transferred. The buyer must therefore take out their own policy for the sea journey.

What do the 110% of the CIF value cover?

The value of the goods plus 10% for ancillary costs and loss of profit in the event of a claim. This is the standard cover of the CIF/CIP incoterms, expected by banks and buyers, to prevent the insured from remaining at a loss after compensation.

How much does insuring a container cost?

An indicative order of magnitude of 0.2 to 0.6% of the insured value, depending on the insurer, the destination and the cover. It is a modest item compared to the risk of losing a container of oil in transit.

What is the difference between transport insurance and credit insurance?

Transport insurance covers the goods during the journey (damage, loss, water damage). Credit insurance (COTUNACE in Tunisia) covers the buyer's non-payment, usually at 80-90% of the receivable. These are two distinct policies, one on the physical risk, the other on the financial risk.

Is the insurance certificate mandatory in the file?

It appears in the documentary file as soon as the sale is CIF, CIP, DAP or DDP — the seller then takes it out and proves the cover. Under FOB, CFR or EXW, the insurance falls to the buyer and does not appear in the seller's file. See the export documents guide.

---

Need an insured CIF quotation for your market? Request a quote — we specify the incoterm, the cover and the insurance certificate. Full method in the transport & packaging guide.

July 2026 data, indicative and to be re-verified before any commitment. Usual cover 110% of the CIF value; cost 0.2-0.6% depending on insurer and destination; allocation according to Incoterms 2020.