Protect Your Business by Protecting Valuable Information—Confidentiality Clauses

Does your business use information that, if disclosed, has the potential to damage your company’s ability to make a profit or possibly even ruin your reputation?  Just a heads up—every business has confidential information.  Some companies don’t even realize the value of the information and the destruction that could result if the information is revealed outside of the company.  Other companies recognize the value, but do not take the steps to ensure the information is protected.  One way of protecting your business is to have a confidentiality policy in place.  There are a few steps to take get the right clause, however. 

How do you know what to keep confidential?  First, you need to know what information should not be disclosed.  Much of this is pretty basic, including employee information (social security numbers, etc.), client or customer information, and your company’s financial information.  But there are other forms of information that is also confidential and should be protected: trade secrets, specific processes, business methods, formulas, inventions, etc.  if you know what you want to protect, you can then create a policy for you and your employees to follow.  The creation can include different levels of access as well as extra protection with non-compete clauses. 

Once a policy is in place, every employee needs to be aware of the policy and understand his or her responsibility to keep that information protected.  It must be understood what confidential information is and what happens if information is disclosed, whether inadvertently or not (before or after employment).  Disciplinary practices should also be put into place and implemented with care.  Educate employees on procedures for identifying and safeguarding the information that is so important to your business. 

What is considered confidential is an important consideration that a business should have an attorney look over before it’s too late.  If you are looking to implement a confidentiality policy or would like a review of the policies tat protect your business, call the attorneys at Goosmann Law Firm, PLC, in our Sioux Falls, Sioux City, and Omaha offices.  We can and help you decide the best course of action.