diff --git a/Cargo.lock b/Cargo.lock
index 91b5b773f..e44db3f04 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -3723,6 +3723,7 @@ dependencies = [
  "tap_core",
  "tempfile",
  "test-assets",
+ "test-log",
  "thegraph-core",
  "thiserror",
  "tokio",
diff --git a/crates/tap-agent/Cargo.toml b/crates/tap-agent/Cargo.toml
index d17245f0a..979343c12 100644
--- a/crates/tap-agent/Cargo.toml
+++ b/crates/tap-agent/Cargo.toml
@@ -50,3 +50,4 @@ futures = { version = "0.3.30", default-features = false }
 tempfile = "3.8.0"
 wiremock.workspace = true
 test-assets = { path = "../test-assets" }
+test-log = { version = "0.2.12", default-features = false }
diff --git a/crates/tap-agent/src/agent/sender_accounts_manager.rs b/crates/tap-agent/src/agent/sender_accounts_manager.rs
index 8633dbd8d..6a22e07ce 100644
--- a/crates/tap-agent/src/agent/sender_accounts_manager.rs
+++ b/crates/tap-agent/src/agent/sender_accounts_manager.rs
@@ -160,6 +160,7 @@ impl Actor for SenderAccountsManager {
         // Start the new_receipts_watcher task that will consume from the `pglistener`
         // after starting all senders
         state.new_receipts_watcher_handle = Some(tokio::spawn(new_receipts_watcher(
+            myself.get_cell(),
             pglistener,
             escrow_accounts,
             prefix,
@@ -464,6 +465,7 @@ impl State {
 /// Continuously listens for new receipt notifications from Postgres and forwards them to the
 /// corresponding SenderAccount.
 async fn new_receipts_watcher(
+    actor_cell: ActorCell,
     mut pglistener: PgListener,
     escrow_accounts_rx: Receiver<EscrowAccounts>,
     prefix: Option<String>,
@@ -476,16 +478,22 @@ async fn new_receipts_watcher(
                 'scalar_tap_receipt_notification'",
         );
     loop {
-        // TODO: recover from errors or shutdown the whole program?
-        let pg_notification = pglistener.recv().await.expect(
-            "should be able to receive Postgres Notify events on the channel \
-                'scalar_tap_receipt_notification'",
-        );
-        let new_receipt_notification: NewReceiptNotification =
-            serde_json::from_str(pg_notification.payload()).expect(
+        let Ok(pg_notification) = pglistener.recv().await else {
+            error!(
+                "should be able to receive Postgres Notify events on the channel \
+                'scalar_tap_receipt_notification'"
+            );
+            break;
+        };
+        let Ok(new_receipt_notification) =
+            serde_json::from_str::<NewReceiptNotification>(pg_notification.payload())
+        else {
+            error!(
                 "should be able to deserialize the Postgres Notify event payload as a \
                         NewReceiptNotification",
             );
+            break;
+        };
         if let Err(e) = handle_notification(
             new_receipt_notification,
             escrow_accounts_rx.clone(),
@@ -496,6 +504,12 @@ async fn new_receipts_watcher(
             error!("{}", e);
         }
     }
+    // shutdown the whole system
+    actor_cell
+        .kill_and_wait(None)
+        .await
+        .expect("Failed to kill manager.");
+    error!("Manager killed");
 }
 
 async fn handle_notification(
@@ -595,7 +609,7 @@ mod tests {
     use alloy::hex::ToHexExt;
     use indexer_monitor::{DeploymentDetails, EscrowAccounts, SubgraphClient};
     use ractor::concurrency::JoinHandle;
-    use ractor::{Actor, ActorRef};
+    use ractor::{Actor, ActorRef, ActorStatus};
     use reqwest::Url;
     use ruint::aliases::U256;
     use sqlx::postgres::PgListener;
@@ -853,9 +867,11 @@ mod tests {
             HashMap::from([(SENDER.1, vec![SIGNER.1])]),
         ))
         .1;
+        let dummy_actor = DummyActor::spawn().await;
 
         // Start the new_receipts_watcher task that will consume from the `pglistener`
         let new_receipts_watcher_handle = tokio::spawn(new_receipts_watcher(
+            dummy_actor.get_cell(),
             pglistener,
             escrow_accounts_rx,
             Some(prefix.clone()),
@@ -882,6 +898,33 @@ mod tests {
         new_receipts_watcher_handle.abort();
     }
 
+    #[test_log::test(sqlx::test(migrations = "../../migrations"))]
+    async fn test_manager_killed_in_database_connection(pgpool: PgPool) {
+        let mut pglistener = PgListener::connect_with(&pgpool).await.unwrap();
+        pglistener
+            .listen("scalar_tap_receipt_notification")
+            .await
+            .expect(
+                "should be able to subscribe to Postgres Notify events on the channel \
+                'scalar_tap_receipt_notification'",
+            );
+
+        let escrow_accounts_rx = watch::channel(EscrowAccounts::default()).1;
+        let dummy_actor = DummyActor::spawn().await;
+
+        // Start the new_receipts_watcher task that will consume from the `pglistener`
+        let new_receipts_watcher_handle = tokio::spawn(new_receipts_watcher(
+            dummy_actor.get_cell(),
+            pglistener,
+            escrow_accounts_rx,
+            None,
+        ));
+        pgpool.close().await;
+        new_receipts_watcher_handle.await.unwrap();
+
+        assert_eq!(dummy_actor.get_status(), ActorStatus::Stopped)
+    }
+
     #[tokio::test]
     async fn test_create_allocation_id() {
         let senders_to_signers = vec![(SENDER.1, vec![SIGNER.1])].into_iter().collect();