If you mean your own artwork, then you'd take a picture of it, upload it to your computer (make sure you know where you're saving it), then select Insert > Picture in Word, browse in the location where you saved the photo, click the picture, and insert. If you mean an image from the internet or something, you can just save it to your computer and basically follow the rest of the steps above.
This applies more to teachers than to anyone else, but clip art (especially black line clip art) can´t be beat when it comes to using images that are going to be photocopied. It creates a much cleaner look than a photo. While there is much talk of going digital, the reality is that most of the world still is using paper for teaching . . . and a lot of it, not because we aren´t open to the digital world, but many times not all students have access.
Which brings us to Creative Commons, the license Office’s new Bing-powered search filters for. My colleague Danny explained what Creative Commons is, and why you should use it What Is Creative Commons, And Should You Use It? What Is Creative Commons, And Should You Use It? Creative Commons is a set of licenses which automatically give you permission to do various things, such as reuse and distribute the content. Let's find out more about it and how to use it. Read More , but the quick version is that it’s a way for artists to tell the web their images are free to use.