Yes, of course. Any servo needs to have its "loop" closed at all times. It may be that if you put a 10 K Ohm resistor across the tach input terminals on the servo amp, then an open tach circuit will no longer cause a runaway.
Well, the tach can also have the brushes go bad, the wire can fail due to flexing, etc.
It is unlikely the tach AND the encoder will fail at the same time.
I just got in the boards for my "Copley interface", which will also work on the AMC amps (they are the same). The servo amp needs a contact closure to ground to enable it, and produces a 5 V signal when it goes into fault status. A quirk is that when disabled, it shows fault status. So, this board suppresses the fault indication for a moment until the amp has gotten enabled. The signal from one of the DIO SSR's can be used to send the enable to the servo amps. By default, EMC2 does not go to E-stop on a following error, allowing the servo amps to drift (or continue to run away, if that was the cause). I have to find out how to modify the ppmc_io.hal file to make this happen.
Jon