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noun B1 Intermediate Very common

policy

POL-uh-see

Policy (noun) means a course of action or set of principles adopted by a government, organization, or person. Example: “The company changed its return policy last month.”

noun
1
A course of action or set of principles adopted by a government, organization, or person.
"The company changed its return policy last month."
"The government's foreign policy came under heavy criticism."
2
A contract of insurance.
"Check your policy to see what damage it actually covers."

How to use policy

Learner’s notes

In plain EnglishAn official plan or set of rules for how something should be done, or an insurance contract.

Common mistake

Don't confuse with "policy" as in insurance — same word, different context, and easily distinguished by the surrounding sentence.

Common pairings
company policy insurance policy foreign policy set a policy

Word forms

policied past tense, policies plural, policies plural, policies singular

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Test yourself on “policy” A quick quiz — meaning, synonyms & usage

Fill the gap

Can you complete this real example?

The company changed its return _____ last month.

Etymology

From Old French policie, from Latin politia, "citizenship, government." A doublet of "police" and "polity."

Origin: Latin

guideline rule principle protocol strategy approach course of action policy racket

Related words

Rhymes for policy

See all rhymes for policy →

Frequently asked questions

What does “policy” mean?

The word “policy” means a course of action or set of principles adopted by a government, organization, or person. In plain terms, an official plan or set of rules for how something should be done, or an insurance contract.

How do you pronounce “policy”?

“Policy” is pronounced POL-uh-see (/ˈpɑ.lə.si/ in IPA).

How do you use “policy” in a sentence?

Here is “policy” used in a sentence: “The company changed its return policy last month.”

What is another word for “policy”?

Words with a similar meaning to “policy” include policy racket.

What part of speech is “policy”?

“Policy” is a noun.

Where does the word “policy” come from?

The word “policy” comes from Latin. From Old French policie, from Latin politia, "citizenship, government." A doublet of "police" and "polity.".

Is “policy” a common word?

“Policy” is a very common word in modern English, usually learned at around the B1 level.

How many meanings does “policy” have?

“Policy” has 2 distinct senses listed in this dictionary. The most common is: a course of action or set of principles adopted by a government, organization, or person.

What is the difference between a policy and a law?

A policy is a chosen course of action or set of guiding principles adopted by a government, company, or person. A law is a formal rule enforced by the state, with penalties for breaking it. Policies shape and justify laws, but a policy alone is not legally binding the way a law is.

What is the difference between a policy and a procedure?

A policy states the principle and intent — what an organization will do and why. A procedure sets out the practical steps — exactly how to carry the policy out, in order. The policy is the rule; the procedure is the method. One guides decisions, the other guides day-to-day actions.

What are the types of policy?

Policy takes many forms. Public policy is set by governments to guide society, covering areas like health, education, and the economy. Organizational policy governs how a company or institution operates internally. An insurance policy is a contract of cover. People even speak of a personal policy — a private rule someone lives by.

What is an example of a policy?

A company might adopt a remote-work policy stating that staff may work from home three days a week. A government might set a policy of free healthcare for all citizens. Each is a settled principle guiding future decisions, rather than a one-off choice, and it shapes how the group consistently acts.

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