It is protection installed to protect, usually motors, from going beyond the amperage capacities that were set down by the manufacturer's specifications of the motor. As a motor loads up to its rated HP it will operate within the motors amperage range. More loading on the motor will increase the amperage draw to a point where the motor's winding will start to burn or short out due to insulation breakdown of the motor coils. Over load protection is a settable device that will limit the current to a specific value. The setting on the over current device is the motor's FLA (full load amps). If the motor amperage goes higher that the set point the overload protection, the overload protection contacts will open and drop the motor's magnetic contactor off line. In some cases this could be an annoyance but it does save the motor from destroying itself.
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to protect the source from overloading a switch can be opened as a circuit breaker, fuse, overload protection schemes
There are many types of overload protection these days and all are based on the FLA (full load amps) of the motor.
The only way an Inverter could overload a circuit would be on the supply side. The fusing/protection for the inverter is incorrect.
It is an over heat protection to prevent pump windings from buring out
due to the extension of loads they are using the relays for protection.........