LMI Group has established an educational channel on YouTube to explain commonly used insurance jargon and policies to consumers.

Two videos have been uploaded so far, focusing on property insurance and business interruption cover, and the plan is to add a video every week.

“All we want is as many people in Australia as possible to understand insurance and get the right cover,” LMI Head of e-Services Steven Manning told insuranceNEWS.com.au.

He says a lot of the high level of underinsurance “comes through misunderstanding and not really knowing [insurance]. It doesn’t have to be like that.”

Mr Manning hosts the two videos, which have so far attracted more than 130 views since last week.

In the video on business interruption, which has CGU’s support, Mr Manning explains the cover and how a business hit by an unexpected setback can resume operations.

“We all know the statement ‘cash is king’,” he says in the video. “Well, business interruption insurance protects that kingdom by providing regular cash injections throughout the time your business is not running at 100% or the period of disruption, and providing cover not only for the expenses the business incurs, but also any reductions in turnover.”

The other video touches on first-loss policies in property and home contents insurance.

“A first-loss policy covers you up to the amount in which you are insured for,” Mr Manning says. “Take your time, go through what you want and don’t want to insure for, and work out an amount that will cover you totally. Don’t just estimate.

“The same rules don’t apply for business insurance.”

Check out the videos here.