The present invention is a method and system which determine signal probability and transfer probability for each node in a netlist describing an electrical circuit; determine, using the signal probability and transfer probability, a fault detection probability for each node; and, using the fault detection probabilities, determine overall fault coverage of the electrical circuit described in the netlist. The method and system of the present invention then, using the fault coverage data, heuristically determine a set of testpoints to be inserted into the netlist which increase the overall fault coverage of the electrical circuit above a predetermined value.