Navigate to Settings > Policies.
The Policies Tab in the Settings area contains three options:
1. The available Policy Types - useful for reporting.
2. Draft Policy Status options - often this is left simply as 'Draft' - policies in this state CANNOT be published to public viewers.
3. Final Policy Status - often this is simply 'Final' or 'Ratified' but you can have as many options as you choose.
Add the options required and press Submit. These will then become selectable options.