In most situations, you may need to insert a text watermark, however, you can insert an image as the watermark in a word file. Please see below for details:
Step 1: Click the "Design" tab from the ribbon;
Step 2: Click the "Watermark" command in the "Page Background" section;
Step 3: Click "Custom Watermark" from the drop-down list;
Step 4: In the new window, check "Picture watermark" and click "Select Picture";
Step 5: Select the location of the picture, either from your computer or the network. Please remember to check "Washout";
Step 6: Follow the steps and find the picture to insert the image as the watermark.
Now all the pages have the watermark, please refer to How to Insert a Watermark on First Page Only if you only want the watermark to appear on the first page.