diff --git a/CHANGELOG.md b/CHANGELOG.md
index e210cc986..42168b977 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,7 +12,7 @@
 - You can now specify a `chunk_overlap` when creating an index in the Document Index.
 
 ### Fixes
-...
+ - TaskSpan now properly sets its status to `Error` on crash.
 
 ### Deprecations 
  - Deprecate old Trace Viewer as the new `StudioClient` replaces it. This affects `Tracer.submit_to_trace_viewer`.
diff --git a/src/intelligence_layer/core/tracer/tracer.py b/src/intelligence_layer/core/tracer/tracer.py
index 1983a7105..0beb67c19 100644
--- a/src/intelligence_layer/core/tracer/tracer.py
+++ b/src/intelligence_layer/core/tracer/tracer.py
@@ -331,21 +331,6 @@ def record_output(self, output: PydanticSerializable) -> None:
         """
         ...
 
-    def __exit__(
-        self,
-        exc_type: Optional[type[BaseException]],
-        exc_value: Optional[BaseException],
-        _traceback: Optional[TracebackType],
-    ) -> None:
-        if exc_type is not None and exc_value is not None and _traceback is not None:
-            error_value = ErrorValue(
-                error_type=str(exc_type.__qualname__),
-                message=str(exc_value),
-                stack_trace=str(traceback.format_exc()),
-            )
-            self.record_output(error_value)
-        self.end()
-
 
 class NoOpTracer(TaskSpan):
     """A no-op tracer.
@@ -391,6 +376,14 @@ def end(self, timestamp: Optional[datetime] = None) -> None:
     def export_for_viewing(self) -> Sequence[ExportedSpan]:
         return []
 
+    def __exit__(
+        self,
+        exc_type: Optional[type[BaseException]],
+        exc_value: Optional[BaseException],
+        _traceback: Optional[TracebackType],
+    ) -> None:
+        pass
+
 
 class JsonSerializer(RootModel[PydanticSerializable]):
     root: SerializeAsAny[PydanticSerializable]
diff --git a/tests/core/tracer/test_in_memory_tracer.py b/tests/core/tracer/test_in_memory_tracer.py
index 530faf0f7..fa41c1487 100644
--- a/tests/core/tracer/test_in_memory_tracer.py
+++ b/tests/core/tracer/test_in_memory_tracer.py
@@ -99,7 +99,10 @@ def test_task_span_records_error_value() -> None:
         raise ValueError("my bad, sorry")
 
     assert isinstance(tracer.entries[0], InMemoryTaskSpan)
-    error = tracer.entries[0].output
+    error_log = tracer.entries[0].entries[0]
+    assert isinstance(error_log, LogEntry)
+
+    error = error_log.value
     assert isinstance(error, ErrorValue)
     assert error.message == "my bad, sorry"
     assert error.error_type == "ValueError"
diff --git a/tests/core/tracer/test_tracer.py b/tests/core/tracer/test_tracer.py
index 19a896ab8..88563b46f 100644
--- a/tests/core/tracer/test_tracer.py
+++ b/tests/core/tracer/test_tracer.py
@@ -104,7 +104,7 @@ def test_tracer_exports_task_spans_to_unified_format(
     "tracer_fixture",
     tracer_fixtures,
 )
-def test_tracer_exports_error_correctly(
+def test_tracer_exports_error_correctly_on_span(
     tracer_fixture: str,
     request: pytest.FixtureRequest,
 ) -> None:
@@ -129,6 +129,36 @@ def test_tracer_exports_error_correctly(
     assert span.status == SpanStatus.ERROR
 
 
+@pytest.mark.parametrize(
+    "tracer_fixture",
+    tracer_fixtures,
+)
+def test_tracer_exports_error_correctly_on_taskspan(
+    tracer_fixture: str,
+    request: pytest.FixtureRequest,
+) -> None:
+    tracer: Tracer = request.getfixturevalue(tracer_fixture)
+
+    try:
+        with tracer.task_span("name", input="input"):
+            delay()
+            raise SpecificTestException
+    except SpecificTestException:
+        pass
+    delay()
+
+    unified_format = tracer.export_for_viewing()
+
+    assert len(unified_format) == 1
+    span = unified_format[0]
+    assert span.name == "name"
+    assert span.parent_id is None
+    assert span.start_time < span.end_time < utc_now()
+    assert span.attributes.type == SpanType.TASK_SPAN
+    assert span.status == SpanStatus.ERROR
+    assert span.attributes.output is None
+
+
 @pytest.mark.parametrize(
     "tracer_fixture",
     tracer_fixtures,