What does Free on Board mean? Read on to discover the definition & meaning of the term Free on Board - to help you better understand the language used in insurance policies.
Free on Board
Free on board (FOB) is a term involving the shipping of products and the party that is responsible for them while they are in transit. "Free on board destination" means that it is the seller who is responsible for the products while they are being shipped. "Free on board origin" means that it is the buyer who is liable for the loss or damage of the products while they are being shipped.
We hope the you have a better understanding of the meaning of Free on Board.