policy (n.1)
"way of management," late 14c., policie, "study or practice of government; good government;" from Old French policie (14c.) "political organization, civil administration," from Late Latin politia "the state, civil administration," from Greek politeia "state, administration, government, citizenship," from polites "citizen," from polis "city, state" (see polis). Meaning "plan of action, way of management" first recorded c. 1400.
policy (n.2)
"written insurance agreement," 1560s, from Middle French police "contract, bill of lading" (late 14c.), from Italian polizza "written evidence of a transaction," from Old Italian poliza, from Medieval Latin apodissa "receipt for money," from Greek apodexis "proof, declaration," from apo- "off" + deiknynia "to show," cognate with Latin dicere "to say, speak" (from PIE root *deik- "to show," also "pronounce solemnly").