The trade term stated on the sales contract between the seller and the buyer will determine where and by whom an import or export of goods is insured. It is therefore necessary to understand when the risk and ownership of the goods passes from the seller to the buyer under the different types of contract of sale by referring to the INCOTERMS. This is because in the event of loss of or damage to the goods, it is essential to establish which party must bear the loss and be indemnified according to the provisions of the insurance policy.