diff --git a/skyvern/forge/sdk/api/llm/api_handler_factory.py b/skyvern/forge/sdk/api/llm/api_handler_factory.py
index 23ea0195..635d63c5 100644
--- a/skyvern/forge/sdk/api/llm/api_handler_factory.py
+++ b/skyvern/forge/sdk/api/llm/api_handler_factory.py
@@ -10,6 +10,7 @@ import structlog
 from anthropic import NOT_GIVEN
 from anthropic.types.beta.beta_message import BetaMessage as AnthropicMessage
 from jinja2 import Template
+from litellm.types.router import AllowedFailsPolicy
 from litellm.utils import CustomStreamWrapper, ModelResponse
 from openai import AsyncOpenAI
 from openai.types.chat.chat_completion_chunk import ChatCompletionChunk
@@ -26,7 +27,13 @@ from skyvern.forge.sdk.api.llm.exceptions import (
     LLMProviderError,
     LLMProviderErrorRetryableTask,
 )
-from skyvern.forge.sdk.api.llm.models import LLMAPIHandler, LLMConfig, LLMRouterConfig, dummy_llm_api_handler
+from skyvern.forge.sdk.api.llm.models import (
+    LLMAllowedFailsPolicy,
+    LLMAPIHandler,
+    LLMConfig,
+    LLMRouterConfig,
+    dummy_llm_api_handler,
+)
 from skyvern.forge.sdk.api.llm.ui_tars_response import UITarsResponse
 from skyvern.forge.sdk.api.llm.utils import llm_messages_builder, llm_messages_builder_with_history, parse_api_response
 from skyvern.forge.sdk.artifact.models import ArtifactType
@@ -103,6 +110,20 @@ def _log_vertex_cache_hit_if_needed(
         )
 
 
+def _convert_allowed_fails_policy(policy: LLMAllowedFailsPolicy | None) -> AllowedFailsPolicy | None:
+    if policy is None:
+        return None
+
+    return AllowedFailsPolicy(
+        BadRequestErrorAllowedFails=policy.bad_request_error_allowed_fails,
+        AuthenticationErrorAllowedFails=policy.authentication_error_allowed_fails,
+        TimeoutErrorAllowedFails=policy.timeout_error_allowed_fails,
+        RateLimitErrorAllowedFails=policy.rate_limit_error_allowed_fails,
+        ContentPolicyViolationErrorAllowedFails=policy.content_policy_violation_error_allowed_fails,
+        InternalServerErrorAllowedFails=policy.internal_server_error_allowed_fails,
+    )
+
+
 class LLMAPIHandlerFactory:
     _custom_handlers: dict[str, LLMAPIHandler] = {}
     _thinking_budget_settings: dict[str, int] | None = None
@@ -310,7 +331,7 @@ class LLMAPIHandlerFactory:
             retry_after=llm_config.retry_delay_seconds,
             disable_cooldowns=llm_config.disable_cooldowns,
             allowed_fails=llm_config.allowed_fails,
-            allowed_fails_policy=llm_config.allowed_fails_policy,
+            allowed_fails_policy=_convert_allowed_fails_policy(llm_config.allowed_fails_policy),
             cooldown_time=llm_config.cooldown_time,
             set_verbose=(False if settings.is_cloud_environment() else llm_config.set_verbose),
             enable_pre_call_checks=True,
diff --git a/skyvern/forge/sdk/api/llm/models.py b/skyvern/forge/sdk/api/llm/models.py
index 45274c57..b60273be 100644
--- a/skyvern/forge/sdk/api/llm/models.py
+++ b/skyvern/forge/sdk/api/llm/models.py
@@ -1,8 +1,6 @@
 from dataclasses import dataclass, field
 from typing import Any, Awaitable, Literal, Optional, Protocol, TypedDict
 
-from litellm import AllowedFailsPolicy
-
 from skyvern.forge.sdk.models import Step
 from skyvern.forge.sdk.schemas.ai_suggestions import AISuggestion
 from skyvern.forge.sdk.schemas.task_v2 import TaskV2, Thought
@@ -48,6 +46,16 @@ class LLMConfig(LLMConfigBase):
     reasoning_effort: str | None = None
 
 
+@dataclass(frozen=True)
+class LLMAllowedFailsPolicy:
+    bad_request_error_allowed_fails: int | None = None
+    authentication_error_allowed_fails: int | None = None
+    timeout_error_allowed_fails: int | None = None
+    rate_limit_error_allowed_fails: int | None = None
+    content_policy_violation_error_allowed_fails: int | None = None
+    internal_server_error_allowed_fails: int | None = None
+
+
 @dataclass(frozen=True)
 class LLMRouterModelConfig:
     model_name: str
@@ -79,7 +87,7 @@ class LLMRouterConfig(LLMConfigBase):
     set_verbose: bool = False
     disable_cooldowns: bool | None = None
     allowed_fails: int | None = None
-    allowed_fails_policy: AllowedFailsPolicy | None = None
+    allowed_fails_policy: LLMAllowedFailsPolicy | None = None
     cooldown_time: float | None = None
     max_tokens: int | None = SettingsManager.get_settings().LLM_CONFIG_MAX_TOKENS
     max_completion_tokens: int | None = None
diff --git a/skyvern/webeye/actions/actions.py b/skyvern/webeye/actions/actions.py
index 573fa898..3e525f3a 100644
--- a/skyvern/webeye/actions/actions.py
+++ b/skyvern/webeye/actions/actions.py
@@ -3,8 +3,7 @@ from enum import StrEnum
 from typing import Annotated, Any, Literal, Type, TypeVar
 
 import structlog
-from litellm import ConfigDict
-from pydantic import BaseModel, Field
+from pydantic import BaseModel, ConfigDict, Field
 
 from skyvern.errors.errors import UserDefinedError
 from skyvern.webeye.actions.action_types import ActionType