diff --git a/src/utils/__tests__/claude-settings.test.ts b/src/utils/__tests__/claude-settings.test.ts
index 27ddde7..9108d38 100644
--- a/src/utils/__tests__/claude-settings.test.ts
+++ b/src/utils/__tests__/claude-settings.test.ts
@@ -7,14 +7,20 @@ import {
     beforeEach,
     describe,
     expect,
-    it
+    it,
+    vi
 } from 'vitest';
 
 import {
     CCSTATUSLINE_COMMANDS,
     getClaudeSettingsPath,
+    getExistingStatusLine,
     installStatusLine,
-    isKnownCommand
+    isInstalled,
+    isKnownCommand,
+    loadClaudeSettings,
+    saveClaudeSettings,
+    uninstallStatusLine
 } from '../claude-settings';
 import { initConfigPath } from '../config';
 
@@ -28,6 +34,12 @@ function readInstalledCommand(): string {
     return data.statusLine?.command ?? '';
 }
 
+function writeRawClaudeSettings(content: string): void {
+    const settingsPath = getClaudeSettingsPath();
+    fs.mkdirSync(path.dirname(settingsPath), { recursive: true });
+    fs.writeFileSync(settingsPath, content, 'utf-8');
+}
+
 beforeEach(() => {
     testClaudeConfigDir = fs.mkdtempSync(path.join(os.tmpdir(), 'ccstatusline-claude-settings-'));
     process.env.CLAUDE_CONFIG_DIR = testClaudeConfigDir;
@@ -131,4 +143,139 @@ describe('buildCommand via installStatusLine', () => {
         await installStatusLine(true);
         expect(readInstalledCommand()).toBe(`${CCSTATUSLINE_COMMANDS.BUNX} --config '/my path/settings.json'`);
     });
+});
+
+describe('backup and error handling behavior', () => {
+    it('saveClaudeSettings should create .bak backup before overwrite', async () => {
+        writeRawClaudeSettings(JSON.stringify({
+            statusLine: {
+                type: 'command',
+                command: 'preexisting-command',
+                padding: 1
+            }
+        }));
+
+        await saveClaudeSettings({
+            statusLine: {
+                type: 'command',
+                command: CCSTATUSLINE_COMMANDS.NPM,
+                padding: 0
+            }
+        });
+
+        const settingsPath = getClaudeSettingsPath();
+        const saved = JSON.parse(fs.readFileSync(settingsPath, 'utf-8')) as { statusLine?: { command?: string } };
+        expect(saved.statusLine?.command).toBe(CCSTATUSLINE_COMMANDS.NPM);
+        expect(fs.existsSync(`${settingsPath}.bak`)).toBe(true);
+
+        const backup = JSON.parse(fs.readFileSync(`${settingsPath}.bak`, 'utf-8')) as { statusLine?: { command?: string } };
+        expect(backup.statusLine?.command).toBe('preexisting-command');
+    });
+
+    it('installStatusLine should create .orig backup before updating settings', async () => {
+        writeRawClaudeSettings(JSON.stringify({
+            statusLine: {
+                type: 'command',
+                command: 'old-command',
+                padding: 1
+            }
+        }));
+
+        await installStatusLine(false);
+
+        const settingsPath = getClaudeSettingsPath();
+        expect(fs.existsSync(`${settingsPath}.orig`)).toBe(true);
+
+        const orig = JSON.parse(fs.readFileSync(`${settingsPath}.orig`, 'utf-8')) as { statusLine?: { command?: string } };
+        expect(orig.statusLine?.command).toBe('old-command');
+    });
+
+    it('loadClaudeSettings should return empty object when settings file is missing', async () => {
+        await expect(loadClaudeSettings()).resolves.toEqual({});
+    });
+
+    it('loadClaudeSettings should log and throw when settings file is invalid JSON', async () => {
+        writeRawClaudeSettings('{ invalid json');
+        const consoleErrorSpy = vi.spyOn(console, 'error').mockImplementation(() => undefined);
+        try {
+            await expect(loadClaudeSettings()).rejects.toThrow();
+            expect(consoleErrorSpy).toHaveBeenCalledWith(
+                'Failed to load Claude settings:',
+                expect.anything()
+            );
+        } finally {
+            consoleErrorSpy.mockRestore();
+        }
+    });
+
+    it('isInstalled should return false when settings cannot be loaded', async () => {
+        writeRawClaudeSettings('{ invalid json');
+        const consoleErrorSpy = vi.spyOn(console, 'error').mockImplementation(() => undefined);
+        try {
+            await expect(isInstalled()).resolves.toBe(false);
+            expect(consoleErrorSpy).not.toHaveBeenCalled();
+        } finally {
+            consoleErrorSpy.mockRestore();
+        }
+    });
+
+    it('installStatusLine should warn and recover when existing settings are invalid', async () => {
+        writeRawClaudeSettings('{ invalid json');
+        const consoleErrorSpy = vi.spyOn(console, 'error').mockImplementation(() => undefined);
+        try {
+            await installStatusLine(false);
+
+            const settingsPath = getClaudeSettingsPath();
+            const installed = JSON.parse(fs.readFileSync(settingsPath, 'utf-8')) as { statusLine?: { command?: string; padding?: number } };
+            expect(installed.statusLine?.command).toBe(CCSTATUSLINE_COMMANDS.NPM);
+            expect(installed.statusLine?.padding).toBe(0);
+            expect(fs.existsSync(`${settingsPath}.orig`)).toBe(true);
+            expect(fs.readFileSync(`${settingsPath}.orig`, 'utf-8')).toBe('{ invalid json');
+
+            expect(consoleErrorSpy).toHaveBeenCalledWith(
+                `Warning: Could not read existing Claude settings. A backup exists at ${settingsPath}.orig.`
+            );
+        } finally {
+            consoleErrorSpy.mockRestore();
+        }
+    });
+
+    it('uninstallStatusLine should warn and return without modifying invalid settings', async () => {
+        writeRawClaudeSettings('{ invalid json');
+        const consoleErrorSpy = vi.spyOn(console, 'error').mockImplementation(() => undefined);
+        try {
+            await uninstallStatusLine();
+
+            const settingsPath = getClaudeSettingsPath();
+            expect(fs.readFileSync(settingsPath, 'utf-8')).toBe('{ invalid json');
+            expect(fs.existsSync(`${settingsPath}.bak`)).toBe(false);
+            expect(consoleErrorSpy).toHaveBeenCalledWith(
+                'Warning: Could not read existing Claude settings.'
+            );
+        } finally {
+            consoleErrorSpy.mockRestore();
+        }
+    });
+
+    it('getExistingStatusLine should return null when settings cannot be loaded', async () => {
+        writeRawClaudeSettings('{ invalid json');
+        const consoleErrorSpy = vi.spyOn(console, 'error').mockImplementation(() => undefined);
+        try {
+            await expect(getExistingStatusLine()).resolves.toBeNull();
+            expect(consoleErrorSpy).not.toHaveBeenCalled();
+        } finally {
+            consoleErrorSpy.mockRestore();
+        }
+    });
+
+    it('isInstalled should accept known commands with --config and undefined padding', async () => {
+        await saveClaudeSettings({
+            statusLine: {
+                type: 'command',
+                command: `${CCSTATUSLINE_COMMANDS.NPM} --config /tmp/settings.json`
+            }
+        });
+
+        await expect(isInstalled()).resolves.toBe(true);
+    });
 });
\ No newline at end of file
diff --git a/src/utils/claude-settings.ts b/src/utils/claude-settings.ts
index 76bfb30..07be371 100644
--- a/src/utils/claude-settings.ts
+++ b/src/utils/claude-settings.ts
@@ -89,16 +89,44 @@ export function getClaudeSettingsPath(): string {
     return path.join(getClaudeConfigDir(), 'settings.json');
 }
 
-export async function loadClaudeSettings(): Promise<ClaudeSettings> {
+/**
+ * Creates a backup of the current Claude settings file.
+ */
+async function backupClaudeSettings(suffix = '.bak'): Promise<string | null> {
+    const settingsPath = getClaudeSettingsPath();
+    const backupPath = settingsPath + suffix;
     try {
-        const settingsPath = getClaudeSettingsPath();
-        if (!fs.existsSync(settingsPath)) {
-            return {};
+        if (fs.existsSync(settingsPath)) {
+            const content = await readFile(settingsPath, 'utf-8');
+            await writeFile(backupPath, content, 'utf-8');
+            return backupPath;
         }
+    } catch (error) {
+        console.error('Failed to backup Claude settings:', error);
+    }
+
+    return null;
+}
+
+interface LoadClaudeSettingsOptions { logErrors?: boolean }
+
+export async function loadClaudeSettings(options: LoadClaudeSettingsOptions = {}): Promise<ClaudeSettings> {
+    const { logErrors = true } = options;
+    const settingsPath = getClaudeSettingsPath();
+
+    // File doesn't exist - return empty object
+    if (!fs.existsSync(settingsPath)) {
+        return {};
+    }
+
+    try {
         const content = await readFile(settingsPath, 'utf-8');
         return JSON.parse(content) as ClaudeSettings;
-    } catch {
-        return {};
+    } catch (error) {
+        if (logErrors) {
+            console.error('Failed to load Claude settings:', error);
+        }
+        throw error;
     }
 }
 
@@ -107,13 +135,24 @@ export async function saveClaudeSettings(
 ): Promise<void> {
     const settingsPath = getClaudeSettingsPath();
     const dir = path.dirname(settingsPath);
+
+    // Backup settings before overwriting
+    await backupClaudeSettings();
+
     await mkdir(dir, { recursive: true });
     await writeFile(settingsPath, JSON.stringify(settings, null, 2), 'utf-8');
 }
 
 export async function isInstalled(): Promise<boolean> {
-    const settings = await loadClaudeSettings();
+    let settings: ClaudeSettings;
+
+    try {
+        settings = await loadClaudeSettings({ logErrors: false });
+    } catch {
+        return false; // Can't determine if installed, assume not
+    }
     const command = settings.statusLine?.command ?? '';
+
     return (
         isKnownCommand(command)
         && (settings.statusLine?.padding === 0
@@ -140,7 +179,16 @@ function buildCommand(baseCommand: string): string {
 }
 
 export async function installStatusLine(useBunx = false): Promise<void> {
-    const settings = await loadClaudeSettings();
+    let settings: ClaudeSettings;
+
+    const backupPath = await backupClaudeSettings('.orig');
+    try {
+        settings = await loadClaudeSettings({ logErrors: false });
+    } catch {
+        const fallbackBackupPath = `${getClaudeSettingsPath()}.orig`;
+        console.error(`Warning: Could not read existing Claude settings. A backup exists at ${backupPath ?? fallbackBackupPath}.`);
+        settings = {};
+    }
 
     const baseCommand = useBunx
         ? CCSTATUSLINE_COMMANDS.BUNX
@@ -157,7 +205,14 @@ export async function installStatusLine(useBunx = false): Promise<void> {
 }
 
 export async function uninstallStatusLine(): Promise<void> {
-    const settings = await loadClaudeSettings();
+    let settings: ClaudeSettings;
+
+    try {
+        settings = await loadClaudeSettings({ logErrors: false });
+    } catch {
+        console.error('Warning: Could not read existing Claude settings.');
+        return; // if we can't read, return... what are we uninstalling?
+    }
 
     if (settings.statusLine) {
         delete settings.statusLine;
@@ -166,6 +221,10 @@ export async function uninstallStatusLine(): Promise<void> {
 }
 
 export async function getExistingStatusLine(): Promise<string | null> {
-    const settings = await loadClaudeSettings();
-    return settings.statusLine?.command ?? null;
+    try {
+        const settings = await loadClaudeSettings({ logErrors: false });
+        return settings.statusLine?.command ?? null;
+    } catch {
+        return null; // Can't read settings, return null
+    }
 }
\ No newline at end of file