This is done to exclude water, moisture, or corrosive agents, to increase resistance to shocks and vibrations, or to prevent gaseous phenomena such as corona discharge in high-voltage assemblies.
When such materials are used only on single components instead of entire assemblies, the process is referred to as encapsulation.
[1] Many sites recommend using a potting product to protect sensitive electronic components from impact, vibration, and loose wires.
[5] Conformal coating gives most of the benefits of potting, and is lighter and easier to inspect, test, and repair.
High Tg potting compounds may break solder bonds through solder fatigue by hardening at a higher temperature because the coating then shrinks as a rigid solid over a larger part of the temperature range, thus developing greater force.