The generator frame is grounded via the EGC (equipment ground conductor) which the neutral is bonded to at the service disconnect. All you have to is search the web about unbonding portable gen neutral when gen is used to power house electrical system.
I'm talking about when the neutral is not switched. If neutral is switched then neutral should be bonded at gen.
Think about this logically:
- The generator has three wires in its cord to the house: Hot, Neutral and Ground (possibly two hots for a 240v generator)
- The generator is an isolated power source. Since it's on rubber wheels and plastic feet, it has no reference to earth ground
- Ground and Neutral are bonded together at panel inside the house
On most generators, the ground pins on the outlets are bonded to the generator chassis, and the chassis is bonded to the neutral. If you un-bond the neutral from generator chasis, the ground pins and the generator chassis are now "floating". They have no 0v reference.
When connected to house panel, the generator's chassis becomes connected to neutral inside the panel via the ground wire in the cable joining the generator to the panel.
Now take your cord connecting the generator to your panel, and severe the neutral connection, but leave the hot and ground wires intact. You now have no neutral path back to the generator. So now the neutral bus inside your panel is now floating at 120v. Your grounding system is also now at 120v, since it's bonded to neutral inside the panel. No problem, the ground is hooked up to the generator, right?
Well no, since you unbonded the generator's chassis from the genhead's neutral, the generator's chassis (and therefor ground connection on its outlets) are no longer referenced to 0v, and are not capable of sinking any fault current. So now all of the piping and faucets inside your home are now at 120v potential relative to neutral on the generator.