Sorry to hear about this. Not sure how they can crack the lower case. That tool uses a 3/4" breaker bar and I dont see how one could tighten it enough to break or crack the housing.. They may have galled the threads, but still. Unless the drive fell out of the drive stand, or something like that..
I think the marina should replace the housing, then send it to someone that knows what they are doing to have it setup with your parts. Then they can pay for the damages.
Not sure why the insurance company should pay for their mistakes. Just makes boat insurance rates go up. Just my .02...

Dick

Not sure how it broke and they avoided the question, I never offered for ins. to cover it nor did they ask .. I am pretty sure they are doing the right thing and just replacing it. They said they were looking into fixing it but I don't think I will give them that choice ..

Well that is good news.. I hope it all works out for you! Not the fun part of boating..

werent you one of the guys going on and on about boat thieves? and here you are telling someone to steal?

Thats happened before.