> 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?" .

It entitles the company selling you the products to earn a higher profit. In other words, don't buy it - its a rip-off. If the items come through damaged in transit, the company should make good on them whether you buy the insurance or not -- after all, you are paying shipping fees, and have a right to expect the stuff to arrive intact.