Gefahrenübergang

What is the transfer of risk?

The transfer of risk is a legal term from the law of sale and commercial law. It defines the moment from which the buyer bears the economic risk for goods – meaning the risk that the goods are lost, damaged, or destroyed without the seller being held liable. Up until that point, the risk lies with the seller. The transfer of risk must be strictly distinguished from the transfer of ownership: both can occur at different points in time, which in practice frequently leads to misunderstandings.

How does the transfer of risk work in practice?

The specific moment of handover is determined by the purchase contract, the agreed delivery terms, and where applicable the chosen Incoterms. Incoterms – internationally standardised trade clauses – define precisely at which location and at which point in time the risk transfers. Examples:

• Under EXW (Ex Works), the risk passes to the buyer at the seller's premises as soon as the goods are made available for collection.
• Under FOB (Free On Board), the risk transfers upon loading of the vessel at the port of shipment.
• Under DDP (Delivered Duty Paid), the seller bears the risk until delivery to the agreed destination.

In intralogistics and domestic trade, individually agreed handover points – loading dock, warehouse, port, or customer premises – are often defined by contract. What is critical is that the moment of handover is clearly documented: delivery notes, Proof of Delivery (POD), photos at the time of delivery, or digital scans serve as evidence should a claim be made for damage at a later stage.

What matters when structuring the transfer of risk?

For logistics management, procurement, and warehouse planning, the transfer of risk gives rise to several operational implications. First and foremost, insurance coverage must be seamlessly coordinated across the entire transport chain – coverage gaps arise precisely when handover points and insurance policies are not synchronised. In addition, the transfer of risk determines who can hold the carrier or service provider accountable in the event of a loss, and which claim deadlines apply.

From a process perspective, the following questions should be clarified:

• At which physical point does the transfer take place – factory, port, loading dock, or end customer?
• Which documentation is systematically captured and archived at the point of handover?
• Which insurance covers which segment of the chain, and are there overlaps or gaps?
• How are carrier SLAs and claims processes aligned with the point of handover?

Particularly in international supply chains with multiple transshipment points, it is advisable not to leave the transfer of risk undefined, but to actively shape it as part of the procurement and logistics strategy. Vendor-specific regulations and national legal traditions can differ considerably, which is why legal advice is recommended for complex contractual arrangements.