Business Data Classification Policy

BUSINESS DATA CLASSIFICATION POLICY

WHEREAS, the undersigned parties recognize that corporate information assets require formal classification, handling, and protection consistent with business risk, legal obligations, and contractual commitments; and

WHEREAS, Company Name: and Service Provider Name: (collectively, the "Parties") desire to adopt a uniform Business Data Classification Policy to govern the creation, labeling, storage, transmission, retention, and disposal of business data;

WHEREAS, this Policy establishes classification levels, required protections for each level, roles and responsibilities, and the process for exceptions and audits effective as of Effective Date: .

Purpose

The purpose of this Business Data Classification Policy (the "Policy") is to define classification levels for all business data and prescribe minimum handling, access, labeling, and retention practices designed to protect confidentiality, integrity, and availability of information assets.

Scope

This Policy applies to all physical and electronic data created, received, maintained, or transmitted by or on behalf of the Parties, including data stored on corporate devices, cloud services, removable media, and third-party systems used to process corporate data. The Policy applies to employees, contractors, vendors, and any individual with access to business data.

Definitions

Confidential Information: information the unauthorized disclosure of which could reasonably be expected to cause harm to the Parties, their customers, or partners. Public Information: information approved for public release. Internal Use: information intended for internal business use only. Restricted: highly sensitive information requiring the highest level of protection.

Classification Levels and Minimum Handling Requirements

1. Public — Information approved for public release. Handling: May be published without restriction; no special controls required.

2. Internal Use — Business information intended for internal use only. Handling: Access limited to employees and contractors with business need; do not publish externally without approval.

3. Confidential — Sensitive business information (including non-public financials, customer data). Handling: Encrypt in transit and at rest, restrict access by role, log access, require NDA for external disclosure.

4. Restricted — Highly sensitive data (including regulated personal data, payment card data, and trade secrets). Handling: Strong encryption, multi-factor authentication, explicit written approval for access, separate controls for export and transmission.

Roles and Responsibilities

Policy Owner: — responsible for maintenance, classification disputes, and periodic review. Data Owners — accountable for assigning classification to data within their domains. Users — required to follow handling and labeling requirements.

Scope of Work

Payment Terms

Where applicable to implementation services governed by this Policy, Parties agree to the following payment terms.

Term and Termination

Confidentiality

Each Party shall maintain the confidentiality of Confidential and Restricted data in its custody and shall not disclose such data except as authorized by the Data Owner or as required by law. Parties shall implement administrative, physical, and technical measures consistent with industry standards to protect classified data. Disclosure to third parties requires a written confidentiality agreement and demonstrable need-to-know.

Handling Controls—Technical and Administrative

Minimum controls for Confidential and Restricted data (select applicable controls):

Encrypt at rest

Encrypt in transit

Multi-factor authentication required

Role-based access controls

Centralized logging and monitoring

Labeling and Marking

All classified documents and electronic records shall be labeled with the assigned classification level and handling instructions. Labeling is required at the document header and prior to external transmission. Responsible Party for labeling:

Data Retention and Secure Disposal

Incident Reporting and Response

Report suspected or actual data incidents to Incident Response Contact: within Reporting Window: . Parties shall cooperate in investigation, containment, remediation, notification, and root cause analysis as required by law and contract.

Training and Awareness

All employees and contractors with access to business data must complete Classification and Handling training with frequency: . Training completion shall be documented and retained.

Exceptions and Approval Process

Exceptions to this Policy must be requested in writing via Exception Requestor: and approved in writing by Policy Owner. Exception duration and compensating controls must be documented.

Compliance, Auditing, and Enforcement

The Parties shall audit adherence to this Policy at Audit Frequency: . Non-compliance may result in disciplinary action, contract remedies, or termination where appropriate.

Governing Law

This Policy shall be governed by and construed in accordance with the laws of Governing State: without regard to conflicts of law principles.

Entire Agreement

This Policy, together with any attached schedules or implementation addenda executed by the Parties, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior oral or written agreements, understandings, or representations relating to classification and handling of business data.

Amendment and Review

The Policy Owner shall review this Policy at least once per year and may amend it with written notice to the other Party. Material changes affecting contractual obligations require mutual written consent.

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