Most businesses have confidential and private information. Disclosure of confidential information could damage a company, especially if that information falls into the hands of a competitor.
In an independent contractor relationship, which is not as restrictive as an employer-employee relationship, the lines of what to disclose and what not to disclose can become unclear. An independent contractor confidentiality (or nondisclosure) agreement gives notice to all of your contractors and potential contractors that they have ongoing confidentiality to the company regarding any or all operations. By signing the agreement, the contractor acknowledges that the disclosure of confidential information is a breach of his or her contract and allows or dictates consequences for breach.