policy

¹ American  

[pol-uh-see] / ˈpɒl ə si /

noun

policies plural

1. a definite course of action adopted for the sake of expediency, facility, etc..

   We have a new company policy.

   Synonyms:

   rule, principle, strategy

2. a course of action adopted and pursued by a government, ruler, political party, etc..

   our nation's foreign policy.

3. action or procedure conforming to or considered with reference to prudence or expediency.

   It was good policy to consent.

4. prudence or expediency; shrewdness.

   Showing great policy, he pitted his enemies against one another.

   Synonyms:

   wit, calculation, acumen, prudence

   Antonyms:

   naiveté

5. Rare. government; polity.

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policy ² American  

[pol-uh-see] / ˈpɒl ə si /

noun

policies plural

1. a document embodying a contract of insurance.

2. a method of gambling in which bets are made on numbers to be drawn by lottery.

3. numbers pool.

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policy ¹ British  

/ ˈpɒlɪsɪ /

noun

1. a plan of action adopted or pursued by an individual, government, party, business, etc

2. wisdom, prudence, shrewdness, or sagacity

3. (often plural) the improved grounds surrounding a country house

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policy ² British  

/ ˈpɒlɪsɪ /

noun

1. a document containing a contract of insurance

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Usage

What does policy mean? Policy most commonly refers to a rule or plan of action, especially an official one adopted and followed by a group, organization, or government. Policy is most commonly used in the context of laws (government policy), a country’s course of action toward others (foreign policy), and the standards or rules that all members of an organization must follow (such as company policy and school policy). Policy also has several other meanings, including an insurance contract. Example: Management encourages carpooling, but they haven’t made it an official company policy yet.

Etymology

Origin of policy¹

First recorded in 1350–1400; Middle English policie “art of government, government, civil administration,” from Middle French, from Latin polītīa polity

Origin of policy²

First recorded in 1555–65; from Middle French police “written proof, documentary evidence,” (from Italian polizza, from Medieval Latin apodissa, apodīxa “receipt, security,” ultimately from Greek apódeixis “a showing or setting forth”; see apodictic, -sis) + -y ³

Explanation

Did you just come up with a plan for reducing the number of paper clips your department uses at work each month? Then you’ve created a policy, a plan of action. The noun policy can be used to refer to a plan developed by an individual or a group. You’ll often see the word used to describe a plan developed by a government, such as a housing policy or a defense policy. A policy typically outlines a specific course of action designed to further the general goals of the group. The word can also be used to describe a formal written agreement, such as an insurance policy.

Example Sentences

Uncertainty around tariff levels and trade policy broadly is high headed into the summer.

From Barron's • May 27, 2026

The boost to earnings was partially influenced by Salesforce’s share-buyback policy, which the company announced on its last earnings report.

From MarketWatch • May 27, 2026

The most important work I can do is putting a voice to these issues, working on policy to stabilize the food system.

From The Wall Street Journal • May 27, 2026

She added that while a third bridge is not Reform policy, she believed it would make sense, warning that long traffic delays were discouraging visitors to the island.

From BBC • May 27, 2026

I said that I imagined the Cubans liked his published attacks on American policy in Latin America, his admiration of Cuban public health and medicine, and his efforts to create connections between Cuba and Harvard.

From "Mountains Beyond Mountains" by Tracy Kidder and Michael French

Related Words

• action
• administration
• approach
• arrangement
• behavior
• code
• guideline
• management
• method
• plan
• practice
• program
• protocol
• rule
• scheme
• strategy
• theory