What Insurance Does an API Business Need?
Most API businesses need tech E&O for customer losses caused by outages, errors or bad responses, plus cyber insurance for security incidents and data loss.
Most API businesses need two policies: technology E&O and cyber insurance. Tech E&O answers a customer who says your downtime, wrong responses or broken integration cost them money. Cyber covers a security incident, such as unauthorized access to data you process, including your own response costs and claims from people whose data was exposed.
You can often buy both from one insurer. Coalition, for example, sells tech E&O as an optional add-on to its cyber policy.
When you apply, tell the insurer what you host, what data you process, which vendors you depend on and what uptime you promise in your contracts. Those service-level promises are what customers will point to in a claim, so compare them with each policy's exclusions and limits.
Coverage Guides Related to Professional Liability, E&O and Tech E&O
Sources for Professional Liability, E&O and Tech E&O Answers
- Technology Errors and Omissions Insurance. The Hartford; What Is Technology Errors and Omissions Insurance?; Coverage; Works With Contracts; Types of Companies That Need Tech E&O Insurance. Accessed 2026-09-25.
- How to add Tech E&O coverage to a Coalition quote. Coalition North American Servicing; Opening paragraph; Steps 1–2 (Tech E&O offered as optional endorsement to Coalition cyber coverage). Accessed 2026-09-25.
- Cyber Insurance: Cybersecurity for Small Business. National Association of Insurance Commissioners; What Should Your Cyber Insurance Policy Cover?; first-party coverage; third-party coverage, pp. 1–2. Accessed 2026-09-25.