Wrote This Earlier
In response to a previous poster who asked the same question.This is can be a very dangerous situation, I'll try to explain. The light (a 110 volt neon light) is wired between the ground (green wire) and the neutral (white wire) of your shore power inlet. The neutral (white) and ground (green) wires should be at the same potential voltage wise. In other words, A voltmeter attached to the ground and neutral wires should read no voltage. If for some reason, the dock outlet, shore power inlet on the boat, or the shore power cord is miswired and reverses the hot (black wire) with the neutral wire, the light will come on to warn about the "reverse polarity. Reversed polarity connects the hot side of the shore power to the wrong side of various appliances you may have on your boat. For example, if you have an electric drill with a metal case, normally the case is connected to neutral, and the hot runs the motor. Reverse it, and now the case is hot! If you were holding the drill and contacted anything grounded, mast, keel bolts, engine, etc., ZZZAAAAAAAP! You become the conductor which is not good for your health. The bad part is that most appliances will work properly. This situation is like a snake waiting to strike. In this scenario, the reverse polarity light would be lit brightly. If the polarity light is lit only dimly, the problem is either a broken or bad ground or neutral wire. The problem could be as simple as a worn out shore power connector. That is why wriggling the connector will sometime correct the problem. If reseating the connector makes the light go out, the shore power connector (either the receptacle or the plug) is worn and needs to be replaced. Make sure you check both ends. This is dangerous as well since any fault in the tool or appliance will once again cause you to be the conductor if the right circumstances are present. The polarity could truly be reversed especially if the marina has had electrical work done recently, you've changed the shore power inlet on the boat, changed either end of the shore power cord, and less likely, bought a new shore power cord.