Confidentiality Agreement

Protecting your company’s privacy should be a paramount concern. Many other companies have suffered the terrible effects of having their confidential data leaked, either intentionally or unintentionally. And most of them had a difficult time recovering. The ones responsible for leaking their data are both within and outside their organization, including employees and business partners. You have to safeguard every crucial company information; they’re prized properties. Do that by issuing confidentiality agreement forms. Feel free to create them using our Confidentiality Agreement Examples & Samples.

25+ Confidentiality Agreement Examples & Samples

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What Is a Confidentiality Agreement?

A confidentiality agreement, also a non-disclosure agreement or NDA, is a document that legally binds an individual to follow company confidentiality and privacy policies. This legal document prevents an individual from disclosing confidential data to unauthorized entities or using them in any way. The individual will face legal sanctions if he or she does so. It’s as good as committing theft.

How to Create a Confidentiality Agreement

According to Statista, more than 164.8 million confidential records were exposed due to data breaches in 2019. One probable factor why it reached that number is because of digital technology. With digital technology, people can leak data easily and quickly. Emails containing critical information are very vulnerable to that. With those in mind, protecting your company’s data is more important than ever. Issue data confidentiality agreements or non-disclosure forms to those people you’ll share your data with. Refer to this short guide in making a confidentiality agreement.

Step 1: Indicate the Involved Parties

It should be clear in the agreement who’s obliged to follow confidentiality terms. So, state the name of the individual to who you’ll grant access to your private company data. He or she could be a subordinate employee, supervisor, manager, executive, business partner, or anyone outside the organization.

Step 2: Define the Confidential Data or Information

Next, you have to define what the data or information is about. Explain their importance and impact on your company. In this part of the agreement document, you have to let the involved parties understand why they must keep the data private.

Step 3: Indicate the Agreement’s Duration

It’s important to indicate how long the agreement will stand. It’s up to your privacy needs on how long you should set the agreement’s duration; it could be a year, two years, three years, and beyond. And don’t forget to state that the agreement takes effect immediately. However, in most cases, confidentiality agreements don’t have an end date, especially if the protected data are trade secrets. They can only be terminated if the company issuing them decides to do so.

Step 4: Establish the Sanctions

It wouldn’t be a confidentiality agreement without the sanctions. It’s the sanctions that prompt the involved parties to abide by the agreement. State them clearly on the document one by one. Make sure that they’re easy to understand.

FAQs

Privacy is one of the foundations of your business. Leaving your company data unprotected is like inviting wolves to attack your sheep. Secure your company’s privacy at all times. Make sure of that by downloading our Confidentiality Agreement Templates and NDA Templates.