diff --git a/task.py b/task.py
index 53cc8ed..4ea1fd8 100644
--- a/task.py
+++ b/task.py
@@ -2,6 +2,7 @@
 """Simple task manager CLI."""
 
 import argparse
+import os
 import sys
 from pathlib import Path
 
@@ -9,12 +10,40 @@
 from commands.list import list_tasks
 from commands.done import mark_done
 
+# Module-level config paths (can be overridden for testing)
+CONFIG_DIR = Path.home() / ".config" / "task-cli"
+CONFIG_PATH = CONFIG_DIR / "config.yaml"
+
+DEFAULT_CONFIG = """# Default configuration for task CLI
+# Auto-created if not present
+
+# Task storage settings
+storage:
+  format: json
+  max_tasks: 1000
+
+# Display settings
+display:
+  color: true
+  unicode: true
+"""
+
 
 def load_config():
-    """Load configuration from file."""
-    config_path = Path.home() / ".config" / "task-cli" / "config.yaml"
-    # NOTE: This will crash if config doesn't exist - known bug for bounty testing
-    with open(config_path) as f:
+    """Load configuration from file. Creates default if missing."""
+    global CONFIG_PATH, CONFIG_DIR
+    
+    if not CONFIG_PATH.exists():
+        # Create default config directory and file
+        try:
+            CONFIG_DIR.mkdir(parents=True, exist_ok=True)
+            CONFIG_PATH.write_text(DEFAULT_CONFIG)
+            print(f"Created default config at {CONFIG_PATH}", file=sys.stderr)
+        except OSError as e:
+            print(f"Error: Could not create config file at {CONFIG_PATH}: {e}", file=sys.stderr)
+            sys.exit(1)
+    
+    with open(CONFIG_PATH) as f:
         return f.read()
 
 
diff --git a/test_task.py b/test_task.py
index ba98e43..206aa71 100644
--- a/test_task.py
+++ b/test_task.py
@@ -1,6 +1,8 @@
 """Basic tests for task CLI."""
 
 import json
+import os
+import tempfile
 import pytest
 from pathlib import Path
 from commands.add import add_task, validate_description
@@ -28,3 +30,38 @@ def test_validate_task_id():
 
     with pytest.raises(ValueError):
         validate_task_id(tasks, 99)
+
+
+def test_load_config_creates_default_when_missing():
+    """Test that load_config creates default config when missing (BUG FIX)."""
+    import sys
+    sys.path.insert(0, str(Path(__file__).parent))
+    import task
+    
+    # Use temp directory for testing
+    with tempfile.TemporaryDirectory() as tmpdir:
+        tmp_config_dir = Path(tmpdir) / ".config" / "task-cli"
+        tmp_config_path = tmp_config_dir / "config.yaml"
+        
+        # Ensure config doesn't exist
+        assert not tmp_config_path.exists()
+        
+        # Temporarily override paths
+        original_config_dir = task.config_dir
+        original_config_path = task.config_path
+        task.config_dir = tmp_config_dir
+        task.config_path = tmp_config_path
+        
+        try:
+            # Call load_config which should create the default
+            task.load_config()
+            
+            # Verify config was created
+            assert tmp_config_path.exists(), "Config file should be created"
+            content = tmp_config_path.read_text()
+            assert "storage:" in content, "Default config should have storage section"
+            assert "display:" in content, "Default config should have display section"
+        finally:
+            # Restore original paths
+            task.config_dir = original_config_dir
+            task.config_path = original_config_path