# Insurance protocol for work in a decentralized world
Facilitation of work in a decentralized manner can be a very risky situation. Because of the lack of solid employment agreements and traditional organizations especially with the inception of DAOs (Decentralized Autonomous Organizations). Protecting a worker and a proposer for recurring work or one off tasks can be a very grey area. Workers should not have the risk of producing unrewarded labour and proposer should have the right to refuse the work if it does not fit the quality expectations.
Current problems with a decentralized work model especially while maintaining a trustless nature, is the lack of accountability for the risks involved and a missing centralized entity to be a mediator. This can be very problematic and a time-consuming process that can cause a lot of grief, especially when involving decentralized arbitration and dispute systems such as [Kleros]( What ends up happening is either a worker is left doing work without compensation or an employer is to bite the loss that is incurred by the subpar labour or lack there of.
Insurance can play a pivotal role in protection of labour and purchase interests. Insurance can absorb the risk with the facilitation of labour for an upfront premium or collateral. This eliminates the risk between the labour and the employer while also offering up yield to those who are willing to stake funds and absorb the potential risk. Working on top of 2 sided labour market protocols like [TalentLayer]( premiums and deductibles can be determined based on the labour history of both parties in the work transaction. These premiums will be the yield that liquidity providers are rewarded for insuring the work transactions which can taken as a cut of the transaction amount or an upfront fee from both parties. Because these records are immutable on the blockchain in the form of reviews, merits and accomplishments. The insurance protocol can determine a fair value premium for insuring the labour relative to the risk-reward ratio much like a credit score of the participants and the magnitude of the work being insured. For any delinquencies that may happen with the work transaction, these will be recorded on the blockchain labour protocols and will affect the work credit score, future premiums and ultimately the chances of being insured again in the future.
This insurance can be applied to any areas as long as there is a record base labour credit score on for both provider and customer. Areas it can be applied to:
* Ride Sharing
* Share economy jobs
* Content Creation
* Contracting work
* Design Work
* Employment agreements
* Security assessments