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 is TERRIBLE! Besides being able to edit vector images like Will mentioned (which is important for those of us who don't have graphic artists available to create custom images or the budget or time to buy that service ad hoc), you could also search for style "families" (different graphics that were all in the same style). There was a huge range of files and styles in the collection and it was much faster to find what you need than to do a Bing search. Plus, you knew that everything there was free and free to use, without having to worry about CC license issues. 

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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.
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.

My colleague Chris compared Google Image search to Bing Bing Images vs. Google Images - Which Has Better Results? Bing Images vs. Google Images - Which Has Better Results? Bing’s image search once challenged Google, offering more features and a better design. With infinite scrolling and the ability to search for similar images, Bing was legitimately better than Google at image search just a... Read More , and found Google’s results to be better. If you feel the same way, don’t worry: you can use it to find rights-cleared images. While searching for an image, click Search Tools then Usage Rights.

WPClipart: is here to maintain and grow an online collection of artwork for schoolkids and others that is free of copyright concerns as well as safe from inappropriate images. To ensure these qualities, no direct user-uploaded images are allowed. All artwork is collected/edited or created for use by me with the GIMP, Inkscape and some GIMP extras on Absolute Linux. Please email me if you have any questions or concerns. And thanks for stopping by :-)
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.
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