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Yes, policy is in the scrabble dictionary

...and is worth 15 points by itself.

find more words you can make below

Policy Definition

noun

A course of action, guiding principle, or procedure considered expedient, prudent, or advantageous: Honesty is the best policy.
from The American Heritage Dictionary of the English Language, 4th Edition
A numbers game.
from The American Heritage Dictionary of the English Language, 4th Edition
A written contract or certificate of insurance.
from The American Heritage Dictionary of the English Language, 4th Edition
Prudence, shrewdness, or sagacity in practical matters.
from The American Heritage Dictionary of the English Language, 4th Edition
Prudence or wisdom in the management of affairs.
from Free Scrabble Dictionary

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Wildcard(?) letters appear in RED

Here are some other words you could make with the letters POLICY, you can also
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Top Words by points

Points
policy

13

2 letter words with POLICY

Points

yo

5

po

4

pi

4

li

2

lo

2

oy

5

op

4

oi

2

3 letter words with POLICY

Points

yip

8

col

5

pol

5

poi

5

ply

8

pic

7

oil

3

cop

7

lop

5

lip

5

icy

8

coy

8

4 letter words with POLICY

Points

cloy

9

pyic

11

poly

9

ploy

9

pily

9

clip

8

clop

8

loci

6

coil

6

coly

9

copy

11

oily

7

lipo

6

6 letter words with POLICY

Points

policy

13

Found 34 words in 0.17559 seconds