Can KillDisk Erase a Drive with Physical Damage?

Active@ KillDisk features preferences on how the user wants storage devices with physical damage and errors to be handled. These settings can be accessed by pressing "F2" on the main Killdisk interface or on the main navigation bar by clicking "Tools->Preferances...". Once the preferences are open, navigate to the "Error Handling" tab on the left side of the window to access all error related settings.

If a drive is getting many errors during the erasure process you may be better off physically destroying the drive as it is not re-usable anyways. 

For more details about what individual settings do in this menu, consult the Killdisk User Guide.