Yeah I would expect a flight school to be realistic about it - these things *will* happen, especially if they are taking a punt low hour instructors. Sounds like you are manning up on it and taking responsibility instead of blaming the student - that's a good start.
If there was negligence or carelessness on your part as opposed to just not being experienced/quick/lucky enough to handle whatever happened, then that would be a bit different.
I bet the old hands at your school have some skeletons in their closets and it didn't stop them getting to be where they are now.