I put some think, black heat shrink tubing over it and shrunk it down with a heat gun. It seems to have worked good for over 100 hours. No new scratches/gouges.
1. Use Eyebolts on the rudder horn to lower the chains
2. Protect the Rudder (as above)
3. Put chains in plastic tube (as above) - this also "catches" some engine oil and keeps the chains lubricated / prevents rusting etc.