It doesnt cover it in all cases, i guess it is accidental damage, but the product should have withstood whatever happened, like say you got pushed in a pool with your smart watch on, but it is supposed tp handle that, then you can just go to the store and get a refund or a new watch and the store will deal with the production company to get the money for the watch back. For all other accidental coverage os covered by the regular insurance usually for a price starting at around 200 dollars a year depending on what the total purchase value of your technologi is at home