How does cover work in Shadowrun Returns?

How does cover work? They never really explained it in the game, and there's nothing about it in the help.

Does being in cover reduce my chances to be hit? Do I take reduced damage? Does it affect my aim/damage? Can I shoot over full-cover, or only around it (like in X-Com)? Do partial- or full-cover block Line-of-Sight? How do I know if I'm flanking or being flanked (does such a concept even exist)? Why do I sometimes get a no-cover icon in a seemingly-valid, non-flanked position?

Solution 1:

Cover In Turn-Base Mode, many props and pieces of furniture will offer your Character protection from attack, making you harder to hit. Cover comes in three levels: Light, Medium and Heavy.external Each level gives an increased penalty to enemies that are trying to hit you with guns or spells. BUT the protection only helps if the enemy is attacking you from the direction in which the little Shield icon is facing -- if the enemy Moves first and then attacks from an unprotected side, the Cover won’t help. Use this against your enemies when you are considering an attack!

So from this im getting that it will reduce your chance of getting hit. Since it doesn't mention reduction in damage i dont think it will reduce damage once hit.

here is the full link

Solution 2:

Their FAQ provides this bit as well:

Cover applies to the cardinal points but not diagonals. When you mouse over a position, the UI will tell you all the points you have cover from. Anything between targets can be cover (like a chair) and cover is additive.