Final answer:
EXW (Ex Works) is the INCOTERM where the buyer is responsible for insurance and all other costs from the seller's premises to the final destination. Other terms such as FOB, CIF, and DAP place different levels of responsibility on the seller regarding transportation and insurance.
Step-by-step explanation:
The INCOTERM where the buyer is responsible for insurance from the factory to the final destination is EXW (Ex Works). Under EXW, the seller provides the goods at their premises, or another named place, and the buyer is responsible for all costs and risks involved in taking the goods from the seller's location to the final destination. This includes arranging for transportation, export and import clearances, and insurance.
Comparatively, under FOB (Free On Board), the seller bears the cost and risk until the goods are loaded onto a vessel chosen by the buyer. CIF (Cost, Insurance, and Freight) requires the seller to arrange and pay for transportation and insurance to the destination port. Lastly, under DAP (Delivered At Place), the seller bears all risks and costs until the goods are ready for unloading at the named destination.