Proverbs 17:9 ASV

Proverbs has this way of stating truth that when you try to slow down and digest it, the meaning takes on many flavors. This verse does just that. What does cover an offense mean? Does it mean that you don't tell people when you mess up because you love the other person too much to start a quarrel (cf. 19:14)? Does it mean that the other person forgives the person who makes the offense? Some have suggested that this word parallels with forgiveness but there are other words that are more commonly used to portray that.
Then how ever you want to understand the first part determines how you understand the second half. If it's you who does the offense and chooses to conceal it to promote love, then you must not repeat the offense or you're choosing to separate close friends ("your sin will find you out" kind of thing).
If it's you who forgives someone else's offense, then you must choose not to bring it up again to them or anyone else or you are choosing to separate close friends.
In either case, both are true results. But is it okay to believe the first one of concealing truth from someone to promote love? What other verses enforce that thought?