EXW — Ex Works
At the seller's premises or another named place, once the goods are placed at the buyer's disposal — before loading.
The insurance position
Nobody is obliged to insure under EXW. 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 risk from a point at which they are usually not present and have no control over handling, including the loading of the collecting vehicle.
Where risk passes
At the seller's premises or another named place, once the goods are placed at the buyer's disposal — before loading.
Where cost passes
Same point. The buyer bears everything from the factory gate.
What a broker would tell you
Insure from the moment the goods are placed at your disposal, which means cover must attach at the seller's premises. A transit policy that attaches on loading leaves the loading itself uncovered, and loading damage at origin is a common claim.
The mistake that gets made
Buyers treat EXW as "the shipment starts when my forwarder collects it". It starts earlier. Under EXW the seller does not even have to load the vehicle.
Who is exposed
The buyer carries risk from a point at which they are usually not present and have no control over handling, including the loading of the collecting vehicle.
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.