This paper proposes the reliability improvement of H-Bridge Multi-level (HBM) inverter. This reliability can be implemented through modularization of power circuit, distribution of controller, duplication of controller and communication, and continuous operation method in case of power cell failure for driving medium-voltage & high-power induction motor. It is shown that the modularization and expansion characteristics of the HBM inverter are improved since the individual inverter modules operate more independently when using the proposed concept. Also the fault tolerance is increased by using power cell bypass. The proposed design and control methods are described in detail and the validity of the proposed system is verified experimentally in various industrial fields.