Ideally the finish needs to be touched up. How much it needs it depends a bit on the guitar. The separations on my OM-21 are pretty clean, and didn't pull that far away from the body (yet)... that one I could get away without a finish touch-up. Haven't had it fixed because I bought it used, and it's really not in the way.
When the binding on my D-18 went, it went big, and took some big shards of finish with it, and the binding was so loose that playing it was awkward (wish I had taken pictures). That was under warranty, was fixed by a shop about an hour away, including finish touch-up, and it looks great. It's been about 2 or 3 years and it's holding tight so far.
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"What have I learned but the proper use for several tools" -Gary Snyder
Bourgeois DR-A / Bowerman "Working Man's" OM / Martin Custom D-18 (adi & flame) / Martin OM-21 / Northwood M70 MJ / 1970s Sigma DR-7 / Eastman E6D / Flatiron Signature A5 / Silverangel Econo A
(Call me Dan)
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