Small businesses have been urged to take protective measures against illness or death of a key employee.

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Obtaining recruitment agency formation advice before going into self employment could be a vital thing for recruiters to do if they want to increase their chances of success.

Those setting up a recruitment company may want to ensure they do not rely on one key individual as the business could end up suffering if the person is struck down by illness or dies.

According to research by Scottish Widows, two thirds (65 per cent) of small businesses believe that a key worker's death would have a severe impact on their business.

However, less than one fifth (18 per cent) have actually taken protective measures such as key employee insurance, meaning many businesses are leaving themselves open to disruptions in case of long-term illness.

"In a business with four key male employees, there is a 29 per cent chance one will die before retirement and a 68 per cent chance that one will have a critical illness," commented Scottish Widows' Jerry Bayman, who called on small businesses to be prepared.

Small businesses can outsource back office solutions to an agency in order to free up valuable time.