A confidentiality agreement, also called a non-disclosure agreement (NDA), is a legal contract that requires employees and contractors to keep sensitive business information private. It covers everything from client data and financial information to proprietary processes and strategic plans.

You need confidentiality agreements because your business likely handles information that could damage your company or clients if disclosed improperly. This includes client strategies, financial data, operational details, and your own business methods that give you competitive advantages.

Without proper confidentiality protection, team members might unknowingly share sensitive information, or former employees might use your client relationships and business knowledge to compete against you. A well-drafted agreement creates clear boundaries and legal protection for your most valuable business assets.