My brother-in-law is going to buy a new router and table saw so he can start building a strip-built boat. While ordering, the company asked if he wanted the optional "insurance". He said sure, but after doing so wondered "what do I get out of it?"

I have ordered power tools (random orbital sanders, table saws, etc.) in the past and waived the $1 or $3 "insurance" the mail order company offered. Does anyone out there know what the "insurance" offered through mail entitles the consumer to?

Thanks.