Dropped Engine

If it's a matter of faith in the engine - build another one. Mistakes happen - and I'd bet while they do have insurance for things, this would be paid for without the insurance. But it's a faith thing now with you. So I'd have them give you a credit for an agreed value and start from there. In terms of setting that value - it would be what you could get for it in freshened condition. Not all new. The value of parts and machining new is what you stated, but you had it in for freshening - so you have a used engine. I'm not trying to start a fight - but in my opinion that's the "what's it worth" truth. Assuming it's the typical 4" stroke, stage 3 ported RPMs, etc, I'd expect a long block to get in the $5-6K range depending on the original performance from it.
That is still more than the machine work on a different block - which is why I mention it.