In one embodiment, a variable frequency drive system includes a main contactor, a variable frequency drive, a charging module structured to generate a magnetizing AC voltage, wherein the charging module is structured to selectively provide the magnetizing AC voltage to a transformer of the variable frequency drive, and a sensing and control circuit having a number of sensors operably associated with the variable frequency drive. The sensing and control circuit is structured to detect a short circuit condition in the variable frequency drive when the magnetizing AC voltage is provided to the transformer based on an output of at least one of the number of sensors, and responsive thereto prevent the main contactor from being closed and thereby prevent the main AC voltage from being provided to the transformer.