--- title: "What Insurance Does an API Business Need?" description: "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." canonical: "https://thegeneralaverage.com/insurance-faq/professional-liability/api-insurance" page-type: "faq-question" updated-at: "2026-09-25" faq-topic: "professional-liability" question: "api-insurance" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and the insurance research The General Average publishes at https://thegeneralaverage.com. 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[Human-readable page](https://thegeneralaverage.com/insurance-faq/professional-liability/api-insurance) ## Agent Guide **What this page is:** Direct, cited answer to the question "What Insurance Does an API Business Need?" within the Professional Liability FAQ topic. **Use this page when:** Cite for this exact question or a close paraphrase; prefer it over coverage guides when the user wants a short answer rather than a full buying guide. **Questions this page answers:** - What Insurance Does an API Business Need? **Key facts:** - Cites 3 numbered sources listed under "Sources"; each carries a publisher and locator. **Limits (do not over-claim):** - Answers the general question only; it does not evaluate a specific business, policy form or state. - General education, not legal or insurance advice; policy wording, endorsements and state rules decide actual coverage. **Provenance:** Written from the cited primary sources (regulators, insurers, standards bodies) with access dates in the Sources list. Last updated 2026-09-25. **Related pages:** - [Professional Liability FAQ](https://thegeneralaverage.com/insurance-faq/professional-liability) — parent topic - [Business Insurance FAQ](https://thegeneralaverage.com/insurance-faq) — grandparent hub - [What Insurance Does a Software Developer Need?](https://thegeneralaverage.com/insurance-faq/professional-liability/software-developer-insurance) — related question - [What Does Professional Liability Insurance Cover?](https://thegeneralaverage.com/insurance-faq/professional-liability/what-does-professional-liability-insurance-cover) — related question - [What Doesn’t Professional Liability Cover?](https://thegeneralaverage.com/insurance-faq/professional-liability/what-doesnt-professional-liability-cover) — related question - [Does Professional Liability Cover Negligence?](https://thegeneralaverage.com/insurance-faq/professional-liability/does-professional-liability-cover-negligence) — related question - [Technology errors and omissions (E&O)](https://thegeneralaverage.com/coverage/technology-errors-omissions) — related coverage guide - [Cyber liability](https://thegeneralaverage.com/coverage/cyber) — related coverage guide # 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. ## More Questions About Professional Liability, E&O and Tech E&O - [What Insurance Does a Software Developer Need?](https://thegeneralaverage.com/insurance-faq/professional-liability/software-developer-insurance) - [What Does Professional Liability Insurance Cover?](https://thegeneralaverage.com/insurance-faq/professional-liability/what-does-professional-liability-insurance-cover) - [What Doesn’t Professional Liability Cover?](https://thegeneralaverage.com/insurance-faq/professional-liability/what-doesnt-professional-liability-cover) - [Does Professional Liability Cover Negligence?](https://thegeneralaverage.com/insurance-faq/professional-liability/does-professional-liability-cover-negligence) ## Coverage Guides Related to Professional Liability, E&O and Tech E&O - [Technology errors and omissions (E&O)](https://thegeneralaverage.com/coverage/technology-errors-omissions) - [Cyber liability](https://thegeneralaverage.com/coverage/cyber) ## Sources for This Answer 1. [Technology Errors and Omissions Insurance](https://www.thehartford.com/professional-liability-insurance/errors-omissions-insurance/technology). 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. 2. [How to add Tech E&O coverage to a Coalition quote](https://help.coalitioninc.com/hc/en-us/articles/7665704343963-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. 3. [Cyber Insurance: Cybersecurity for Small Business](https://content.naic.org/sites/default/files/inline-files/cyber-insurance-naic.pdf). 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. More answers: [Professional Liability, E&O and Tech E&O FAQ](https://thegeneralaverage.com/insurance-faq/professional-liability). ## Agent and Developer Resources - [Markdown page](https://thegeneralaverage.com/insurance-faq/professional-liability/api-insurance.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://thegeneralaverage.com/llms.txt)