diff --git a/litellm/proxy/hooks/failure_handler.py b/litellm/proxy/hooks/failure_handler.py
new file mode 100644
index 000000000..36e0fb0e6
--- /dev/null
+++ b/litellm/proxy/hooks/failure_handler.py
@@ -0,0 +1,81 @@
+"""
+Runs when LLM Exceptions occur on LiteLLM Proxy
+"""
+
+import copy
+import json
+import uuid
+
+import litellm
+from litellm.proxy._types import LiteLLM_ErrorLogs
+
+
+async def _PROXY_failure_handler(
+    kwargs,  # kwargs to completion
+    completion_response: litellm.ModelResponse,  # response from completion
+    start_time=None,
+    end_time=None,  # start/end time for completion
+):
+    """
+    Async Failure Handler - runs when LLM Exceptions occur on LiteLLM Proxy.
+
+    This function logs the errors to the Prisma DB
+    """
+    from litellm._logging import verbose_proxy_logger
+    from litellm.proxy.proxy_server import general_settings, prisma_client
+
+    if general_settings.get("disable_error_logs") is True:
+        return
+
+    if prisma_client is not None:
+        verbose_proxy_logger.debug(
+            "inside _PROXY_failure_handler kwargs=", extra=kwargs
+        )
+
+        _exception = kwargs.get("exception")
+        _exception_type = _exception.__class__.__name__
+        _model = kwargs.get("model", None)
+
+        _optional_params = kwargs.get("optional_params", {})
+        _optional_params = copy.deepcopy(_optional_params)
+
+        for k, v in _optional_params.items():
+            v = str(v)
+            v = v[:100]
+
+        _status_code = "500"
+        try:
+            _status_code = str(_exception.status_code)
+        except Exception:
+            # Don't let this fail logging the exception to the dB
+            pass
+
+        _litellm_params = kwargs.get("litellm_params", {}) or {}
+        _metadata = _litellm_params.get("metadata", {}) or {}
+        _model_id = _metadata.get("model_info", {}).get("id", "")
+        _model_group = _metadata.get("model_group", "")
+        api_base = litellm.get_api_base(model=_model, optional_params=_litellm_params)
+        _exception_string = str(_exception)
+
+        error_log = LiteLLM_ErrorLogs(
+            request_id=str(uuid.uuid4()),
+            model_group=_model_group,
+            model_id=_model_id,
+            litellm_model_name=kwargs.get("model"),
+            request_kwargs=_optional_params,
+            api_base=api_base,
+            exception_type=_exception_type,
+            status_code=_status_code,
+            exception_string=_exception_string,
+            startTime=kwargs.get("start_time"),
+            endTime=kwargs.get("end_time"),
+        )
+
+        error_log_dict = error_log.model_dump()
+        error_log_dict["request_kwargs"] = json.dumps(error_log_dict["request_kwargs"])
+
+        await prisma_client.db.litellm_errorlogs.create(
+            data=error_log_dict  # type: ignore
+        )
+
+    pass
diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index 15971263a..011ed04de 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -170,6 +170,7 @@ from litellm.proxy.guardrails.init_guardrails import (
 )
 from litellm.proxy.health_check import perform_health_check
 from litellm.proxy.health_endpoints._health_endpoints import router as health_router
+from litellm.proxy.hooks.failure_handler import _PROXY_failure_handler
 from litellm.proxy.hooks.prompt_injection_detection import (
     _OPTIONAL_PromptInjectionDetection,
 )
@@ -526,14 +527,6 @@ db_writer_client: Optional[HTTPHandler] = None
 ### logger ###
 
 
-def _get_pydantic_json_dict(pydantic_obj: BaseModel) -> dict:
-    try:
-        return pydantic_obj.model_dump()  # type: ignore
-    except Exception:
-        # if using pydantic v1
-        return pydantic_obj.dict()
-
-
 def get_custom_headers(
     *,
     user_api_key_dict: UserAPIKeyAuth,
@@ -687,68 +680,6 @@ def cost_tracking():
                 litellm._async_success_callback.append(_PROXY_track_cost_callback)  # type: ignore
 
 
-async def _PROXY_failure_handler(
-    kwargs,  # kwargs to completion
-    completion_response: litellm.ModelResponse,  # response from completion
-    start_time=None,
-    end_time=None,  # start/end time for completion
-):
-    global prisma_client
-    if prisma_client is not None:
-        verbose_proxy_logger.debug(
-            "inside _PROXY_failure_handler kwargs=", extra=kwargs
-        )
-
-        _exception = kwargs.get("exception")
-        _exception_type = _exception.__class__.__name__
-        _model = kwargs.get("model", None)
-
-        _optional_params = kwargs.get("optional_params", {})
-        _optional_params = copy.deepcopy(_optional_params)
-
-        for k, v in _optional_params.items():
-            v = str(v)
-            v = v[:100]
-
-        _status_code = "500"
-        try:
-            _status_code = str(_exception.status_code)
-        except Exception:
-            # Don't let this fail logging the exception to the dB
-            pass
-
-        _litellm_params = kwargs.get("litellm_params", {}) or {}
-        _metadata = _litellm_params.get("metadata", {}) or {}
-        _model_id = _metadata.get("model_info", {}).get("id", "")
-        _model_group = _metadata.get("model_group", "")
-        api_base = litellm.get_api_base(model=_model, optional_params=_litellm_params)
-        _exception_string = str(_exception)
-
-        error_log = LiteLLM_ErrorLogs(
-            request_id=str(uuid.uuid4()),
-            model_group=_model_group,
-            model_id=_model_id,
-            litellm_model_name=kwargs.get("model"),
-            request_kwargs=_optional_params,
-            api_base=api_base,
-            exception_type=_exception_type,
-            status_code=_status_code,
-            exception_string=_exception_string,
-            startTime=kwargs.get("start_time"),
-            endTime=kwargs.get("end_time"),
-        )
-
-        # helper function to convert to dict on pydantic v2 & v1
-        error_log_dict = _get_pydantic_json_dict(error_log)
-        error_log_dict["request_kwargs"] = json.dumps(error_log_dict["request_kwargs"])
-
-        await prisma_client.db.litellm_errorlogs.create(
-            data=error_log_dict  # type: ignore
-        )
-
-    pass
-
-
 @log_db_metrics
 async def _PROXY_track_cost_callback(
     kwargs,  # kwargs to completion