The present invention provides a method and system for detecting and cross-checking faulty sensors in liquid level indicators and controllers. A liquid level indicator and controller in which one embodiment of the present invention operates includes a control unit for controlling the other components of the liquid level indicator and controller, sensors electrically connected to the control unit for sensing the level of a liquid in a vessel, and an indicating device electrically connected to the control unit for displaying the liquid level. The control unit includes a monitor and a fault detector. In operation, the liquid level indicator and controller has two (2) basic modes. The first mode is a monitor mode. In this mode, the liquid level indicator and controller, under the control of the monitor, senses the liquid level in the vessel using the sensors and displays the liquid level on the indicating device. The second mode is a fault detection mode. In this mode, the liquid level indicator and controller, under the control of the fault detector, detects and cross-checks faulty sensors. If a faulty sensor is detected, the liquid level indicator and controller determines the type of fault, i.e., whether the sensor is open or shorted.