FOB/FAS Endorsement Law and Legal Definition

FOB/FAS Endorsement is the supplemental insurance coverage purchased by the seller on an export shipment that is sold on FOB, FAS, C&F or similar terms of sale where the seller does not arrange the transit insurance. In this case, the buyer’s insurance may only cover the buyer’s interests after the title transfers and may not cover losses before title transfers. This supplemental coverage protects the seller’s interest in the cargo from the time goods leave the point of origin until title transfers to the buyer during transit, usually when cargo is loaded aboard the vessel.