A hoist system with an overspeed detection sub-system for detecting overspeed by comparing an actual drum assembly speed with a target value. For example, the rotation of a motor may be determined by a first rotary encoder and the rotation of a drum may be determined by a second rotary encoder. The output of the first rotary encoder (the basis of a target value) is compared with the output of the second rotary encoder (corresponding to actual motion of the drum). If the difference between the target value and the actual motion is too large, then a problem, such as a broken hoist hardware component may exist, and appropriate remedial action is taken, such as braking the motor and/or the drum.