Here is the Apple Care+ details.
"Every Mac comes with one year of hardware repair coverage through its
limited warranty and up to
90 days of complimentary support. AppleCare+ for Mac extends your coverage to three years from the original purchase date of your Mac and adds up to two incidents of accidental damage coverage, each subject to a service fee of $99 for screen damage or external enclosure damage, or $299 for other damage, plus applicable tax.1 In addition, you’ll get 24/7 priority access to Apple experts by chat or phone."
And the fine print
"1 Service coverage is available only for Mac and its original included accessories for protection against (i) defects in materials or workmanship, (ii) batteries that retain less than 80 percent of their original capacity, and (iii) up to two incidents of accidental damage from handling of your Mac, each incident being subject to a service fee of $99 for screen damage or external enclosure damage, or $299 for other damage, plus applicable tax. If your Mac has catastrophic damage from an accident or is inoperable after unauthorized modifications, you will need to buy a replacement"
I am not sure what the difference is from what is the "accident damage from handling your Mac" which is covered, and "catastrophic damage from an accident" which is not covered.
Maybe one is an "oops, I dropped my laptop!", and the other is "dang, I ran over my laptop"