Multilevel converters based on cascaded cells are well suited for high power applications, due to good control performance, extensive modularity and excellent harmonic distortion. A vital requirement in high power converters is being fault-tolerant, so that a single fault in a cell does not lead to the trip of the entire converter. This paper presents a strategy for fault-tolerance on cell level with Integrated Gate Commutated Thyristors (IGCT). The concept is based on initiating a surge in a phase leg in a failing cell, limited by a di/dt reactor leading to a short circuit failure mode of the IGCT thereby excluding the cell from the chain.