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Yes, policy is in the scrabble dictionary

...and is worth 15 points by itself.

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policy

noun

1. A course of action, guiding principle, or procedure considered expedient, prudent, or advantageous: Honesty is the best policy.

2. A numbers game.

3. A written contract or certificate of insurance.

4. Prudence, shrewdness, or sagacity in practical matters.

5. Prudence or wisdom in the management of affairs.

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

Points

Word Game

policy

13

Scrabble

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2 Letters

Scrabble® Points

yo

5

po

4

pi

4

li

2

lo

2

oy

5

op

4

oi

2

3 Letters

Scrabble® 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 Letters

Scrabble® 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 Letters

Scrabble® Points

policy

13

Found 34 words in 0.24515 seconds