I have used a Fairclough cover for 19 winters. I have also experienced small and large rips, especially over the last 5-6 years. I have re-sown many of the seams and zippers myself on a SailRite sewing machine. Last winter I had a seam open up next to the ridge pole that stretched from stern to the mast. Because I was unable to restitch that seam myself I took the cover to Fairclough and had them re-stitch all of the panel seams in the entire cover. They told me that re-stitching is necessary about every 10-12 years.
The covers must be protected from any sharp edges. It looks like yours opened up at a seam and if that is true then it is typically a thread failure.
This last fall when I installed the cover I had a zipper fail. I did a temporary repair on it to last over this winter and I will be replacing all of the zippers this summer. I think that the UV over 19 seasons has damaged the plastic zippers. Unfortunately nothing lasts forever and everything requires maintenance. The people at Fairclough told me that they have seen covers last up to almost 30 years with periodic maintenance.
Regarding installation and removal, I have a Hunter h40.5 and myself and one friend a year younger than me put the cover on in about 8 hours. When we did this last fall we were 68 and 69. It doesn't get easier with age but we have done it for so many years we both know exactly how it is done. Removal, and folding takes maybe 4 hours. So installation and removal takes two people 12 hours. At $100 per man per hour, you are at $1200. Not including any travel time. Boats are expensive.
Regarding plastic for the shrink wrap, my yard recycles all of it.