Not sure what your mains supplies are like in Canada, here in the UK we are 240v single phase, ie between a live and neutral we get 240v. What are you between live and neutral? If 110v then conneection as you have said is fine.
The plastic cover I am not sure what its for, presume just protection so that the laquer on the wires is not easily damaged thus causing a short. Dont worry about it being a fire hazard, my Bridgeport has had power to it for 5trs or more constantly and has not gone up in flames yet. Here a pic.
Hood