What does policy mean?
A policy is a deliberate and formally established set of principles, rules, or procedures used to guide decisions and conduct. Governments adopt policies concerning matters such as health, education, taxation, and foreign relations, while organizations use policies for employment, safety, communication, and operational procedures. The term can also describe a general strategic approach, as in a cautious policy toward expansion. In insurance, a policy is the contract between an insurer and a policyholder, setting out the coverage provided and the conditions that apply. “Policy” therefore suggests an official or carefully chosen plan rather than a casual personal preference. It is distinct from a law, which is created through formal legislation, and from a procedure, which may be only one method of carrying out a broader plan.
nounA formally adopted set of principles, rules, or procedures governing an organization, institution, government, or other body. In an insurance context, a policy is a contract detailing the terms and conditions of coverage.
- A formal course of action or set of principles adopted by an organization or authority.
- A written contract between an insurer and an insured specifying the terms of insurance coverage.
- A broad strategic approach to achieving an objective.
"The company has introduced a new policy on remote working."
"The council adopted a policy of reducing waste and improving public transport."
"Check the cancellation terms before signing the insurance policy."
"A cautious policy on investment protected the fund during the downturn."
The standard plural changes the ending to -ies.
"The two departments adopted different policies."
The word policy has a political family tree: it comes through French from the Greek word for citizenship and the administration of a city-state.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of policy
Policy comes through French and Latin from the Greek politia, meaning the administration of a city-state or the body of citizens governing it. The sense developed from the organization and principles of government to the broader idea of a planned or systematic course of action. Political, politics, and polity belong to the same Greek root, while police entered English through French from a related Latin and Greek political tradition.
Related word forms
How policy is actually used
The word is formal and is especially common in governmental, institutional, legal, and organizational contexts. In general usage, it can mean a deliberate strategic approach; in insurance, it has the more specific sense of a contract.