FCA — Free Carrier
When the goods are delivered to the carrier nominated by the buyer at the named place — loaded, if the named place is the seller's premises; ready for unloading otherwise.
The insurance position
Nobody is obliged to insure under FCA. The rule allocates cost and risk, and stops there. Whoever bears the risk over a leg of the journey is the party with something to lose on it.
The buyer carries the main carriage. The seller carries the pre-carriage leg to the named place.
Where risk passes
When the goods are delivered to the carrier nominated by the buyer at the named place — loaded, if the named place is the seller's premises; ready for unloading otherwise.
Where cost passes
At the same delivery point.
What a broker would tell you
The most flexible rule and the one the ICC recommends over FOB for containerised cargo, because risk passes where the goods are actually handed over rather than at the ship's rail. Buyers should arrange cover attaching at the named place.
The mistake that gets made
Getting the named place wrong. "FCA Shanghai" is ambiguous; "FCA seller's warehouse, Shanghai" and "FCA CFS terminal, Shanghai" transfer risk at different moments and need different cover start points.
Who is exposed
The buyer carries the main carriage. The seller carries the pre-carriage leg to the named place.
Where a seller has sold on terms that put the risk on the buyer and payment has not been received, seller's interest cover is the usual fallback — it responds when the buyer turns out not to have insured.
Seller's interest cover →Other rules for any mode
Sources
Incoterms® is a registered trademark of the International Chamber of Commerce. This page summarises the insurance consequences of the rule; the ICC publication is the rule.
This page summarises the instruments above. It is not the wording, and it is not legal advice. Where a summary conflicts with a convention text, a policy wording or a certificate, that document governs.
InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.