Definition of “policy” - Learner’s Dictionary

policy

noun uk us /ˈpɒləsi/
IDEAS/PLAN [ C, U ]

B2 a set of ideas or a plan of what to do in particular situations that has been agreed by a government, business, etc:

foreign policy
It is company policy to help staff progress in their careers.
AGREEMENT [ C ]

an agreement that you have with an insurance company (= company that pays the costs if you are injured, etc)

(Definition of “policy” from the Cambridge Learner's Dictionary © Cambridge University Press)