A three level neutral point clamped (NPC) converter includes a plurality of phase legs each having at least two inner switching devices, at least two outer switching devices, at least two clamping diodes, and a protection circuit. An inner component failure sensing circuit is employed in the protection circuit to detect a failure condition in any of the inner switching devices or clamping diodes. The protection circuit further includes a gating signal generation circuit configured to generate a turn ON signal for a respective outer switching device that is adjacent to the failed inner switching device or the clamping diode.