I get asked this question all the time: what the heck is an Non Disclosure Agreement (NDA), and do I really need one for my business? My answer 99% of the time: YUP!

But instead of just throwing legal jargon at you, I always like to break NDAs down in a practical, real‑life way—especially as businesses continue to evolve with remote teams, digital assets, and yes, even AI in the mix.

Here’s what you need to know so you can decide whether an NDA is right for your business (spoiler alert: it probably is).

What Is a Non‑Disclosure Agreement (NDA)?

A Non‑Disclosure Agreement ("NDA") is a legal contract where one or more parties agree not to disclose confidential information that is shared during a business relationship—and often even after that relationship ends.

In practice, NDAs are used to protect things like:

• Business strategies and processes
• Client lists and pricing
• Financial information
• Personal or private information
• Proprietary systems, workflows, or trade secrets
• And more!

An NDA is usually a stand‑alone document, but confidentiality language can also be built directly into contracts like:

• Employment agreements
• Independent contractor agreements
• Brand/Media Management contracts
• Social Media Management contracts
• Coaching agreements
• The goal is the same: making sure sensitive information stays protected.

What’s Typically Included in an NDA?

While every NDA should be tailored to the specific situation, most NDAs include a few core elements:

• What information is considered “confidential”
• What information is excluded (for example, info already public or independently known)
• The receiving party’s obligations to protect and not misuse the information
• How long the information must remain confidential
• Permitted uses of the information (if any)

Many NDAs now also clarify confidentiality obligations related to digital files, cloud storage, passwords, and electronic communications, which is especially important for remote and hybrid teams.

When Is an NDA Needed?

This is one of the most common follow‑up questions I hear. And honestly? Any time someone has access to the inner workings of your business is a great time for an NDA.

Think about it: Employees and independent contractors inevitably walk away with knowledge and information when they leave. NDAs help protect you from concerns like:

1. Someone starting a copy‑cat business using what they learned from you
2. Private or personal information being shared improperly
3. Custom built systems you put in place for your business that you wouldn't want others using. 

If someone knows how your business runs, what you charge, who your clients are, or how you operate behind the scenes, an NDA is doing important work for you.

Keep Your Information Safe!

As entrepreneurs and small business owners, we often share far more personal, financial, medical, and business information with our teams than large corporations do. That makes protecting that information even more critical.

Whether you’re using a solid NDA template or working with a lawyer to customize one, an NDA is one of the simplest and most effective ways to protect sensitive information from being disclosed or misused.

If you regularly share confidential information with employees, contractors, or collaborators, having them sign an NDA is one of the smartest moves you can make. Just make sure you:

• Give them time to review it
• Encourage questions
• Ensure they understand their obligations

A well‑written NDA isn’t about fear. It’s about clarity, trust, and protecting the business you’ve worked so hard to build. Protect your ideas, clients, and confidential information with an attorney-drafted NDA you can trust. Get instant access to The Legal Paige’s professionally written NDA template created by experienced attorneys and designed to help you get Legally Legit!