Crap Judy, that's really bad and on the edge to boot.

Read all the responses to your posts and you got some good advice to work with. Do check into repainting the fender OR the spot to match before putting on any fender chrome. Nice thing about the fender on our CVO's is they are clean. I'm betting you can find a good painter (I'd be PM'ing Puzzled if it were mine) to get that repaired for much less than a new fender and, hopefully, much less than your insurance deductable. May even luck up and somebody on the forum may have the Ruby Red fender for sale if they change to a larger wheel/different fender...may be a good option.
Didn't have any chips on the fender/bat on my last two HD's. Bought Ginger and one week later, rock from an oncoming truck flipped up (heard it hit) and put a pin head sized one on the batwing. It 'bout made me cry. It was in the Typhoon part of the color so not as noticable. Put a small dab of clear and let it be. Not the same as what you have on your fender but hurt just the same. Good luck on whatever road you choose to repair.
Howard