diff --git a/src/api.ts b/src/api.ts
index 9b1ae15..ca6c6c1 100644
--- a/src/api.ts
+++ b/src/api.ts
@@ -335,8 +335,6 @@ export class API {
   private graphqlEndpoint: string;
   /** @ignore */
   private restEndpoint: string;
-  /** @ignore */
-  public disabled: boolean;
 
   /** @ignore */
   constructor(apiKey: string, url: string, disabled?: boolean) {
@@ -345,7 +343,21 @@ export class API {
     this.graphqlEndpoint = `${url}/api/graphql`;
     this.restEndpoint = `${url}/api`;
     this.disabled = !!disabled;
+    this.checkConfig();
+  }
+
+  /** @ignore */
+  private _disabled = false;
+  get disabled() {
+    return this._disabled;
+  }
+  set disabled(value: boolean) {
+    this._disabled = value;
+    this.checkConfig();
+  }
 
+  private checkConfig() {
+    if (this.disabled) return;
     if (!this.apiKey) {
       throw new Error('LITERAL_API_KEY not set');
     }
diff --git a/tests/config.test.ts b/tests/config.test.ts
new file mode 100644
index 0000000..4901d4c
--- /dev/null
+++ b/tests/config.test.ts
@@ -0,0 +1,75 @@
+import { LiteralClient } from '../src';
+
+describe('Literal Ai Config', () => {
+  let savedEnv: Record<string, string | undefined>;
+
+  beforeAll(() => {
+    savedEnv = { ...process.env };
+    delete process.env.LITERAL_API_URL;
+    delete process.env.LITERAL_API_KEY;
+  });
+
+  afterAll(() => {
+    process.env = { ...savedEnv };
+  });
+
+  it('should not throw when disabled', () => {
+    let client: LiteralClient | undefined;
+    expect(() => {
+      client = new LiteralClient(undefined, undefined, true);
+    }).not.toThrow();
+
+    expect(client).toBeDefined();
+
+    // HACK: This is to access private properties
+    const { url, apiKey, disabled } = client!.api as any;
+    expect(url).toBe('https://cloud.getliteral.ai');
+    expect(apiKey).toBe(undefined);
+    expect(disabled).toBe(true);
+  });
+
+  it('should not throw when keys given', () => {
+    let client: LiteralClient | undefined;
+    expect(() => {
+      client = new LiteralClient('KEY', 'URL');
+    }).not.toThrow();
+
+    expect(client).toBeDefined();
+
+    // HACK: This is to access private properties
+    const { url, apiKey, disabled } = client!.api as any;
+    expect(url).toBe('URL');
+    expect(apiKey).toBe('KEY');
+    expect(disabled).toBe(false);
+  });
+
+  it('should not throw when keys are in env', () => {
+    process.env.LITERAL_API_URL = 'URL';
+    process.env.LITERAL_API_KEY = 'KEY';
+
+    let client: LiteralClient | undefined;
+    expect(() => {
+      client = new LiteralClient('KEY', 'URL');
+    }).not.toThrow();
+
+    delete process.env.LITERAL_API_URL;
+    delete process.env.LITERAL_API_KEY;
+
+    expect(client).toBeDefined();
+
+    // HACK: This is to access private properties
+    const { url, apiKey, disabled } = client!.api as any;
+    expect(url).toBe('URL');
+    expect(apiKey).toBe('KEY');
+    expect(disabled).toBe(false);
+  });
+
+  it('should throw when no keys given or found', () => {
+    let client: LiteralClient | undefined;
+    expect(() => {
+      client = new LiteralClient();
+    }).toThrow();
+
+    expect(client).toBeUndefined();
+  });
+});