Mate,
If it were me I'd just let this run its course naturally. Schools have insurance EXACTLY for instances like this. To be honest with you I wouldn't even be offering to pay the excess and I don't think they should expect you to (although I'm sure they appreciate the sentiment/offer).
Remember, these things do happen from time to time with ab initio students...despite your best efforts.
This should have no impact on your current or future employability as either a pilot or instructor.
Keep your chin up.
HP