Under EXW Ex works, who arranges Insurance?

Who is responsible for insurance under EXW terms of delivery under Inco Terms 2020


Is Buyer or Seller responsible for arranging Insurance under EXW? 

As you know, the term EXW means Ex works and the seller is liable only to place the goods at named location  at  his premises, or named location at seller’s place, or  a named terminal  agreed  mutually as per terms of carriage which is incorporated in Sale contract.  However, under EXW,  Inco Terms 2020 designed by ICC does not talk about insurance on movement of goods.    In such cases, either buyer or seller may arrange insurance as per their mutual understanding before placing contract of carriage under Sale contract.

So the liability to cover insurance on movement of goods under EXW is separately decided under contract of carriage between buyer and seller which is incorporated in Sale Agreement.

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