The following is from the document
http://www.cumminspower.com/www/literature/technicalpapers/PT-9005-30-CycleDangers-en.pdf
Along the same lines, NEC 110-10 states that electrical components such as transfer switches shall be protected against extensive damage from short circuits:
110.10 Circuit Impedance and Other
Characteristics: The overcurrent protective
devices, the total impedance, the component short
circuit current ratings, and other characteristics of
the circuit to be protected shall be selected and
coordinated to permit the circuit-protective devices
used to clear a fault to do so without extensive
damage to the electrical components of the circuit.
This fault shall be assumed to be either between
two or more of the circuit conductors or between
any circuit conductor and the grounding conductor
or enclosing metal raceway. Listed products applied
in accordance with their listing shall be considered
to meet the requirements of this section.
Since transfer switches are not overcurrent protective
devices except where integral protection is provided,
they must be protected by upstream overcurrent
protective devices that are capable of safely opening
under short circuit conditions and protecting the
downstream transfer switch.