diff --git a/QuantumNexusProtocol/src/smart_contracts/insurance_contract.py b/QuantumNexusProtocol/src/smart_contracts/insurance_contract.py
new file mode 100644
index 000000000..43235b7c3
--- /dev/null
+++ b/QuantumNexusProtocol/src/smart_contracts/insurance_contract.py
@@ -0,0 +1,32 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.0;
+
+contract InsuranceContract {
+    struct Policy {
+        address insured;
+        uint256 premium;
+        uint256 coverageAmount;
+        bool isActive;
+    }
+
+    mapping(address => Policy) public policies;
+
+    event PolicyCreated(address indexed insured, uint256 premium, uint256 coverageAmount);
+    event PolicyClaimed(address indexed insured, uint256 amount);
+
+    function createPolicy(uint256 premium, uint256 coverageAmount) external payable {
+        require(msg.value == premium, "Premium must be paid");
+        policies[msg.sender] = Policy(msg.sender, premium, coverageAmount, true);
+        emit PolicyCreated(msg.sender, premium, coverageAmount);
+    }
+
+    function claim() external {
+        Policy storage policy = policies[msg.sender];
+        require(policy.isActive, "No active policy");
+        require(address(this).balance >= policy.coverageAmount, "Insufficient funds for claim");
+
+        policy.isActive = false;
+        payable(msg.sender).transfer(policy.coverageAmount);
+        emit PolicyClaimed(msg.sender, policy.coverageAmount);
+    }
+}