This study introduces an innovative method for detecting risks in transmission line insulators by developing an optimized variant of YOLOv5, named Insulator-YOLO. The model addresses key challenges in small-defect detection, complex backgrounds, and computational efficiency. By incorporating GhostNetV2 in the backbone to streamline feature extraction and introducing SE and CBAM attention mechanisms, the model enhances its focus on critical features. The Bibi-directional Feature feature Pyramid pyramid Network network (BiFPN) is applied to enhance multi-scale feature fusion, and the integration of CIoU and NWD loss functions optimizes bounding box regression, achieving higher accuracy. Additionally, focal loss mitigates the imbalance between positive and negative samples, leading to more accurate and robust defect detection. Extensive evaluations demonstrate that Insulator-YOLO significantly improves detection accuracy and efficiency in real-world power line insulator defects, providing a reliable solution for maintaining the integrity of transmission systems.