Make sure you have the correct transfer switch for the type of generator being installed.

If the generator neutral is bonded to the frame by the manufacturer, a transfer switch that breaks the neutral (three pole) is required.

Here is a basic diagram for a typical generator with a bonded neutral.

[Linked Image from electric-ed.com]

However, if the generator neutral is not bonded to the frame, a transfer switch with a solid neutral buss (two pole) is should be used.

Here is the basic diagram for a typical generator with a floating (not bonded) neutral.

[Linked Image from electric-ed.com]

Hope this helps,

Ed