The insurance companies can take the report as evidence, but can then do whatever they want in terms of damages.
Well, let's take a hypothetical example. Say Boats S and P collide on the racecourse, and boat S is damaged. S protests P. Protest committee finds that S broke no rules and that P broke rules 10 and 14, and PC penalizes P.
Although protest committee does not award damages to S ("such a claim is subject to the jurisdiction of the courts" - rule 67(b)), P is responsible for any monetary damages - rule 67(c).
So, lets suppose that S repairs his boat, and asks P to pay the cost. P, being the honorable fellow he is, makes an insurance claim under his liability policy. P's insurance company might deny the claim, especially if it doesn't get the facts, doesn't understand the racing rules, or mistakenly applies the legal doctrine of "assumption of risk". That doesn't make P any less responsible. If P can't get his insurance to cover the (monetary) damages, then P has to pay them out of his own pocket.
The completed protest form (with facts, conclusions, and decision of the protest committee) protects both S and P. S needs it to pursue a claim in the courts (if P doesn't pay willingly). P needs it (and possibly other documentation) to support his insurance claim. If there is no hearing, then somebody is going to get stiffed.
