Handle edge cases in timeout

**Description**
Currently handlers lacks proper monitoring support.

**Proposed solution**
Add configurable monitoring with sensible defaults.

**Priority**: Low/Medium

Start by locating the handler timeout logic and reviewing how monitoring is currently handled. Clarify which timeout edge cases require monitoring and how configuration should behave by default. Done means handlers provide configurable monitoring with sensible defaults and the relevant timeout cases are covered.

Written by the indexing model from the issue text.