What Is Confidential Information?
Written By: Kimberley Ewing
TABLE OF CONTENTS:
Definition of Confidential Information
Key Terms, Elements, and Clauses
Types of Confidential Information
When to Use Confidential Information Clauses
Benefits of Protecting Confidential Information
What is Confidential Information vs Other Information
Examples of Confidential Information in Different Industries
Introduction
The concept of confidential information is central to contracts, compliance, and business relationships. Organisations frequently ask what is confidential information, what information is confidential, or what is considered confidential information when entering into agreements or sharing sensitive data. Understanding information confidentiality is critical because improper disclosure can result in legal, financial, and reputational harm.
This article explains the confidential information meaning, how it is defined in contracts, what constitutes confidential information, common risks, and how businesses manage confidential information effectively.
Definition of Confidential Information
So, what is confidential information?
Confidential information refers to information that is not publicly available and is disclosed under circumstances where it must be kept private. The confidential information definition typically includes business, technical, financial, or personal data that has value because it is not generally known.
A clear definition of confidential information is:
Confidential information (definition): Any information disclosed by one party to another that is designated as confidential or would reasonably be understood to be confidential given its nature and the circumstances of disclosure.
This explains what is meant by confidential information, confidential information means, and what constitutes confidential information.
Key terms, Elements, and Clauses
Contracts dealing with confidentiality of information usually include:
- Definition of confidential – Clarifying what information is confidential
- Scope of confidential information – What information is considered confidential
- Disclosed information meaning – How information is shared
- Use restrictions – How confidential information can be used
- Disclosure of confidential information – When sharing is permitted
- Confidential information can only be shared with authorised parties
- Duration of confidentiality – How long obligations apply
These clauses support information confidentiality and reduce disputes over interpretation.
Types of Confidential Information
There are several types of confidential information, including:
- Confidential business information (pricing, strategies, customer lists)
- Confidential data and personal information
- Highly confidential information (trade secrets, proprietary algorithms)
- Confidential documents and records
- Confidential business information relating to operations or finance
These categories help define what information is confidential in different contexts.
When to Use Confidential Information Clauses
Confidentiality provisions are used when:
- Sharing sensitive business or technical information
- Engaging suppliers, employees, or consultants
- Entering partnerships, mergers, or negotiations
- Complying with data protection and regulatory obligations
This clarifies what is the confidentiality obligation and what does confidentiality mean in practice.
Benefits of Protecting Confidential Information
Properly managing confidential information provides:
- Protection of competitive advantage
- Legal enforceability through contracts
- Trust between parties
- Compliance with laws and regulations
Understanding meaning of confidential and meaning confidentiality strengthens governance and risk management.
Common risks
Risks related to confidential information include:
- Unauthorised sharing confidential information
- Inadequate controls over confidential documents
- Ambiguity over what information is considered confidential
- Errors caused by informal usage or misspellings such as confidentila, condidential, confidentail, condifential, confidenial, confidenctial, confidentional, confidentioal, confidenital, confidetial, confindental, confedential, cofidential, confiential, or cconfidential
Clear drafting and structured processes reduce these risks.
What is Confidential Information vs Other Information
A common question is what is confidential information vs other categories:
- Confidential vs public information – Public information is freely available; confidential is not
- Confidential vs private information – Private information is personal; confidential may include business data (private information synonym)
- Confidential vs proprietary information – Proprietary is a subset of confidential
This comparison clarifies what is confidential and what is the meaning of confidential.
Examples of Confidential Information in Different Industries
Corporate and commercial
- Financial forecasts and pricing models
Technology
- Source code and system architecture
Employment and HR
- Employee records and compensation details
Healthcare
- Patient data and medical records
Finance
- Banking and investment information
These are practical examples of confidential information and examples of confidentiality across sectors.
Managing Confidential Information with Contract Corridor
Managing confidential information across contracts and teams can be challenging. Contract Corridor helps organisations manage confidentiality of business information by:
- Centralising contracts with confidentiality clauses
- Tracking obligations related to confidential information
- Supporting secure access and governance workflows
- Reducing risk associated with disclosure of confidential information
With Contract Corridor, organisations can confidently manage confidential info, ensure compliance, and demonstrate proper handling of sensitive information.
Conclusion
So, what is confidential information? It is information that must be protected from unauthorised disclosure due to its sensitive nature. Understanding the confidential information definition, knowing what constitutes confidential information, and applying effective confidentiality controls are essential for legal compliance and business protection.
Whether you’re asking what information is confidential, what does confidential mean, or how do you handle confidential information, clarity starts with strong contractual definitions and effective document management.
Secure your sensitive information and ensure compliance. Schedule a Demo