When is frame damage too much?

I got into an accident last week, and finally got around to actually peeling off the broken panels and trying to see what all has been damaged.

Well. I found this -

It dented from the engine guards I used, because it hit the ground so hard.

Closer picture -

If I report it, bike is totaled. If I don't -- how risky is it to have a dented frame? Should I take the chance? I've only been riding a few years so I want to make sure I know what the risks could be if I ignore it and repair my bike. The one other concern I have is that that dent was caused by the engine guard being mounted on it. So the replacement would sit on the same spot. Is that not advised since it's a weakened point on the frame?

I'd appreciate any suggestions or advice on this. Breaks my heart to possibly lose my Versys, but I'd rather make an educated decision than go at it blind and hope for the best.

Thanks for the help!