A motor disconnect arrangement is provided for a variable speed drive having a plurality of inverters electrically connected in parallel to a DC link to power a plurality of motors. The disconnect arrangement includes a contactor or other disconnect device connected in series between each inverter output of the variable speed drive and its corresponding motor. The contactor operates to disconnect, isolate or remove the motor from the variable speed drive in the event of a failure of the motor. By removing a failed motor from the variable speed drive, the other motors connected to the variable speed drive can continue to operate normally.