The potential of cyclic silsesquioxanes as flexible coatings has been explored in this work for corrosion protection of metal. A polyurethane coating containing an inorganic polyhedral oligomeric silsesquioxane (POSS) was synthesized and characterized by means of photo-acoustic infrared spectroscopy, X-ray photoelectron spectroscopy (XPS), contact angle and modulated differential scanning calorimetry (MDSC). The coating has been applied to clean steel substrates via dip and spin coating. The POSS based hybrid coating is found to be uniform, dense and essentially defect free. XPS shows that the coating forms a lamellar layered structure on the substrate.