"3.2 Accidental Damage from Handling
If during the Plan Term you submit a valid claim notifying Apple that the Covered Device has failed due to accidental damage from handling (“ADH”), Apple will, subject to the service fee described below, either (i) repair the defect using new or refurbished parts that are equivalent to new in performance and reliability, or (ii) exchange the Covered Device with a replacement product that is new or equivalent to new in performance and reliability (both individually known as a “Service Event”). ADH coverage will expire and all of Apple’s obligations to you under this section 3.2 will be fulfilled in its entirety before the end of the Plan Term when Apple, as a result of ADH claims, has provided to you two (2) Service Events. ADH coverage only applies to an operational or mechanical failure caused by an accident from handling that is the result of an unexpected and unintentional external event (e.g. drops and damage caused by liquid contact other than as a result of defect in material and workmanship) that arises from your normal daily usage of the Covered Device as intended for such Covered Device.
ADH coverage does not include (a) protection against normal wear and tear, theft, misplacement, reckless, abusive, willful or intentional conduct associated with handling and use of the Covered Device, (b) protection against any other act or result not covered by the Plan, as described in Section 4.2 below, or (c) any resultant damage to the Covered Device that arises from one or more conditions described in Section 3.2(a) or (b).
Apple may ask you to provide an explanation of where and when the accident occurred with a detailed description of the actual event. Apple will deny your claim if you fail to pay the service fee or fail to provide information relating to the accident when asked."
Technically, according to the plan, AppleCare+ does not cover normal wear and tear or scratches that doesn't affect the function of the watch. That being said, Apple can, and has bent some of their rules at their discretion.