Fat-E is under constant pressure to improve their products. In particular, reducing weight allows for better performance. Fat-E's design team has found a potential new supplier of the gear mechanism that can significantly reduce the overall weight of the bicycle. The new gear mechanism is available from a German supplier however they will only work under EXW terms. This will require Fat-E to take on new responsibilities that the previous supplier from France had performed. You have been asked to consider this potential change from a logistical perspective and report back to the senior management team. Specifically, you have been asked to:

1. Provide a description of the potential insurance clauses that could be purchased and a recommendation on the coverage that Fat-E should purchase for the new German gears.

2. Provide a description of the role and function of a Customs Broker and a recommendation on using one for the new German gears.