diff --git a/ophyd_devices/utils/psi_device_base_utils.py b/ophyd_devices/utils/psi_device_base_utils.py
index f950ed4..146078c 100644
--- a/ophyd_devices/utils/psi_device_base_utils.py
+++ b/ophyd_devices/utils/psi_device_base_utils.py
@@ -628,11 +628,13 @@ class ExceptionStatus(CompareStatus):
         description: str | None = None,
     ):
         self._configured_exception = exception
+        # A watchdog is meant to stay pending for as long as its composite lives;
+        # inheriting the device default timeout would guarantee a spurious failure.
         super().__init__(
             signal=signal,
             value=value,
             operation_success=operation,
-            timeout=timeout,
+            timeout=NO_TIMEOUT if timeout is None else timeout,
             settle_time=settle_time,
             run=run,
             event_type=event_type,
@@ -835,7 +837,9 @@ class TaskHandler:
         """
         task_args = task_args if task_args else ()
         task_kwargs = task_kwargs if task_kwargs else {}
-        task_status = TaskStatus(self._parent)
+        # Background tasks are unbounded by design; the device default timeout
+        # must not fail their status while the task thread is still running.
+        task_status = TaskStatus(self._parent, timeout=NO_TIMEOUT)
         thread = threading.Thread(
             target=self._wrap_task,
             args=(task, task_args, task_kwargs, task_status),
diff --git a/tests/test_utils.py b/tests/test_utils.py
index e66a7af..f095bf3 100644
--- a/tests/test_utils.py
+++ b/tests/test_utils.py
@@ -1186,7 +1186,7 @@ def test_patched_status_types_use_default_timeout_from_object():
         TransitionStatus(dev.sig, transitions=[1], run=False),
     ]
 
-    assert [status.timeout for status in statuses] == [3, 3, 3, 4, 3, 3, 3, 3, 3]
+    assert [status.timeout for status in statuses] == [3, 3, 3, 4, 3, 3, 3, None, 3]
 
 
 def test_patched_status_explicit_timeout_overrides_object_default():