diff --git a/.gitignore b/.gitignore
new file mode 100644
index 00000000..c3c0e95c
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1,3 @@
+*.pyc
+.cache/
+.coverage
\ No newline at end of file
diff --git a/.travis.yml b/.travis.yml
new file mode 100644
index 00000000..ad025dbe
--- /dev/null
+++ b/.travis.yml
@@ -0,0 +1,8 @@
+language: python
+python:
+  - "2.7"
+install:
+  - "pip install -Ur requirements-test.txt"
+script: "py.test tests/ -v --cov mgmtsystem"
+after_success:
+    - coveralls
\ No newline at end of file
diff --git a/README.md b/README.md
index f2c97541..1b865701 100644
--- a/README.md
+++ b/README.md
@@ -1 +1,6 @@
-MGMT_SYSTEM
+mgmtsystem - A simple virtualization client
+===========================================
+
+[![Coverage Status](https://coveralls.io/repos/RedHatQE/mgmtsystem/badge.svg?branch=master&service=github)](https://coveralls.io/github/RedHatQE/mgmtsystem?branch=master)
+[![Build Status](https://travis-ci.org/RedHatQE/mgmtsystem.svg)](https://travis-ci.org/RedHatQE/mgmtsystem)
+
diff --git a/mgmtsystem/exceptions.py b/mgmtsystem/exceptions.py
index 06deb4e0..e438e7a6 100644
--- a/mgmtsystem/exceptions.py
+++ b/mgmtsystem/exceptions.py
@@ -71,3 +71,7 @@ class VMNotFoundViaIP(Exception):
 
 class HostNotRemoved(Exception):
     """Raised when :py:mod:`utils.mgmt_system` fails to remove host from cluster"""
+
+
+class VMError(Exception):
+    """Raised when a VM goes to the ERROR state."""
diff --git a/mgmtsystem/openstack.py b/mgmtsystem/openstack.py
index 9b0cfa32..74e5f174 100644
--- a/mgmtsystem/openstack.py
+++ b/mgmtsystem/openstack.py
@@ -20,7 +20,8 @@
 
 from base import MgmtSystemAPIBase, VMInfo
 from exceptions import (
-    NoMoreFloatingIPs, NetworkNameNotFound, VMInstanceNotFound, VMNotFoundViaIP, ActionTimedOutError
+    NoMoreFloatingIPs, NetworkNameNotFound, VMInstanceNotFound, VMNotFoundViaIP, ActionTimedOutError,
+    VMError
 )
 
 
@@ -248,7 +249,18 @@ def disconnect(self):
         pass
 
     def vm_status(self, vm_name):
-        return self._find_instance_by_name(vm_name).status
+        """Retrieve Instance status.
+
+        Raises:
+            :py:class:`mgmtsystem.exceptions.VMError
+        """
+        inst = self._find_instance_by_name(vm_name)
+        if inst.status != "ERROR":
+            return inst.status
+        if not hasattr(inst, "fault"):
+            raise VMError("Instance {} in error state!".format(vm_name))
+        raise VMError("Instance {} error {}: {} | {}".format(
+            vm_name, inst.fault["code"], inst.fault["message"], inst.fault["created"]))
 
     def create_volume(self, size_gb, **kwargs):
         volume = self.capi.volumes.create(size_gb, **kwargs).id
diff --git a/requirements-test.txt b/requirements-test.txt
new file mode 100644
index 00000000..ce55fa23
--- /dev/null
+++ b/requirements-test.txt
@@ -0,0 +1,5 @@
+-r ./requirements.txt
+
+pytest
+pytest-cov
+coveralls
diff --git a/tests/__init__.py b/tests/__init__.py
new file mode 100644
index 00000000..40a96afc
--- /dev/null
+++ b/tests/__init__.py
@@ -0,0 +1 @@
+# -*- coding: utf-8 -*-
diff --git a/tests/test_openstack.py b/tests/test_openstack.py
new file mode 100644
index 00000000..84c0498c
--- /dev/null
+++ b/tests/test_openstack.py
@@ -0,0 +1,53 @@
+# -*- coding: utf-8 -*-
+"""Unit tests for Openstack client."""
+import pytest
+
+from mgmtsystem import exceptions, openstack
+
+
+@pytest.fixture(scope="function")
+def provider():
+    os = openstack.OpenstackSystem(tenant=None, username=None, password=None, auth_url=None)
+    return os
+
+
+class mkobj(object):
+    def __init__(self, **d):
+        self.__dict__ = d
+
+
+def test_vm_status_error_raises_with_fault(provider, monkeypatch):
+    """Check that if the Instance gets to the ERROR state, vm_status will let us know."""
+    def _find_instance_by_name(vm_name):
+        return mkobj(
+            status="ERROR",
+            fault={"code": 500, "created": "2015-11-02T10:54:18Z", "details": "x", "message": "y"})
+
+    monkeypatch.setattr(provider, '_find_instance_by_name', _find_instance_by_name)
+
+    with pytest.raises(exceptions.VMError):
+        provider.vm_status("xyz")
+
+
+def test_vm_status_error_raises_without_fault(provider, monkeypatch):
+    """Check that if the Instance gets to the ERROR state, vm_status will let us know.
+
+    With no fault field.
+    """
+    def _find_instance_by_name(vm_name):
+        return mkobj(status="ERROR")
+
+    monkeypatch.setattr(provider, '_find_instance_by_name', _find_instance_by_name)
+
+    with pytest.raises(exceptions.VMError):
+        provider.vm_status("xyz")
+
+
+def test_vm_status_no_error(provider, monkeypatch):
+    """Check that if the Instance is not in error state, it works as usual."""
+    def _find_instance_by_name(vm_name):
+        return mkobj(status="UP")
+
+    monkeypatch.setattr(provider, '_find_instance_by_name', _find_instance_by_name)
+
+    assert provider.vm_status("xyz") == "UP"