As someone who actually has had a complete loss-of-thrust t/r failure at an IGE hover in a Bell 206 I can speak to this issue from a practical standpoint not theoretical. Once the anti-torque is gone, the yaw rate builds up blindingly fast.
First, get rid of the torque if you can. In my case I chopped the throttle. After that it's just a hovering auto. If the throttle/FCL is not on the collective, then yes, dump the lever and fast. Recognize it early and get the landing gear on the ground before the rate of rotation gets too high. Do not wait.