Due to the vast number of substations at the distribution level and increased costs of differential busbar protection, DSOs are in search of cost-effective protection schemes for busbar protection. This includes the use of various communication-based protection schemes, such as the reverse-blocking schemes used at Stedin. However, due to impedance grounding, the single-phase-to-ground short circuit currents have small values in medium voltage impedance-earthed distribution grids. As a result, the reverse-blocking scheme fails to detect this type of fault. This paper introduces a novel distributed protection scheme based on the detection of zero-sequence components of the currents and voltages and the negative-sequence current component. The proposed scheme successfully detects single-phase-to-ground busbar faults by using the standard settings of the widely available overcurrent IEDs, and an IEC 61850 communication between them. Firstly, the detection of the zero- and negative-sequence current components is used to distinguish between a busbar and a feeder fault. Secondly, zero-sequence voltage detection is used to distinguish between the faulty and healthy sections of the busbar when the busbar coupler is opened. This also increases the proposed scheme's reliability by avoiding miss-operation due to human errors during maintenance or testing. The grid is modeled in a Real Time Digital Simulator (RTDS), and a Hardware-in-the-Loop (HiL) simulation is carried out to test the protection scheme. The extensive simulations show the strengths and the limitations of the proposed scheme. Based on the research results, the developed protection scheme is implemented as a standard protection scheme in all of Stedin's new distribution substations.