Definition - What does Standard Policy mean?
A standard policy is an insurance policy that covers standard risks or one that provides mandated or government recommended coverage. In other words, standard policies are insurance policies that provide coverage for general or normal risks within a particular field of insurance. Standard policies can also refer to policies offered by many different companies that have the same coverage.
Insuranceopedia explains Standard Policy
Standard policies are good options for people seeking insurance for basic risks as opposed to highly unusual risks. Standard policies typically do not cover unusual risks. For example, a standard property insurance policy may cover normal property risks, such as roof leaks, but not damage from explosions or riots. Therefore, people who want coverage for explosions, riots, or other extraordinary events may have to purchase endorsements or look for non-standard policies that cover such perils.