Installing an Automatic Transfer Switch?

I'd like to install a standby generator to power all of my home's circuits. I have a 200A service. I am going to need to have the meter pulled, so I can pull the service conductors out of the main panel and into an automatic transfer switch. Is it okay to have the service conductors run through this transfer switch non-fused before entering the main panel, or do I have need to have a Service Disconnect breaker installed upstream of the transfer switch. I.e., replacing the entire meter enclosure with one that is equipped with a 200A service breaker, or alternatively, finding a standalone Service Disconnect breaker in an enclosure mounted alongside the transfer switch, with the service conductors routed through that prior to entering the transfer switch? I was just worried because, if the service conductors traveled through the transfer switch upstream of the Main Breaker, if there was a fault in the transfer switch, the only current limiting device would be from the utility pole, which is likely thousands of Amperes. Seems crazy to me, but I don't know what's considered the norm for this kind of installation. Thanks