Remember, Google looks at each page on your website as a different website. If you get your privacy policy (assuming it's on its own page) penalized what's the big deal? Do you really expect people to search for your privacy policy? Unless the majority of your website has stolen or duplicate content I wouldn't stress over it
Nah, google won't mind too much about the privacy policy dup content - afterall, how differently can you word it? The main thing is that you have one and you include some text and definately the word privacy on the page ;-)