Publisher shall not be responsible for loss or damage to any property of Author, unless such loss or destruction is caused by Publisher's own negligence or willful misconduct.
If Author delivers artwork or photographs in physical media form, and such artwork is lost, destroyed or damaged as a result of Publisher's negligence or misconduct, Publisher will pay to Author, as liquidated damages, the following for each artwork or photograph: $___ for the cover art, $____ for single page spreads, $____ for double page spreads, $____ for spot art, and $____ for photographs (which sums are agreed by the Publisher and Author to be a reasonable estimate of the loss to the Illustrator).
The publisher should be required to exercise a minimal degree of care with regard to handling your work and other materials. If your contract frees the publisher from being responsible for damage to your materials, revise the clause according to Section 24 of the Model Contract so that the publisher is responsible for the destruction caused by its negligence and/or misconduct. If valuable original artwork is being provided to the publisher, you may also want to require that the publisher has insurance to cover any loss or damage (often capped at the amount of the advance).