The industry wireless sensor network (IWSN) technology, which is used to monitor industrial equipment, has attracted more and more attention in recent years. Sensor nodes in IWSN can spontaneously complete distributed networking and carry out monitoring tasks under random deployment conditions. Therefore, a self-organized IWSN is particularly suitable for the fault detection and diagnosis of industrial equipment in complex environments. However, due to the detection, ability of a single sensor node is limited, and the monitoring distribution problem is a typical multidimensional discrete NP-hard combinatorial stochastic optimization problem, which is challenging to solve for the traditional mathematical methods. With the purpose of improving the target monitoring capability and prolonging lifetime of IWSN, a novel hybrid niche immune genetic algorithm (HNIGA) for optimizing the target coverage model of fault detection is proposed. It uses the genetic operation to evolve antibody groups and applies niche technology to maintain the diversity of antibody groups. As a result, HNIGA can effectively reduce the failure rate of detection targets. To verify the performance of HNIGA, a series of simulations under different simulation conditions are carried out. Specifically, HNIGA is compared with genetic algorithm (GA) and simulated annealing (SA). Simulation results show that HNIGA has a faster convergence speed and more robust global search capability than the other two algorithms.