I don't think he meant retrieving a misdelivery. I think he meant an ordinary pickup, as you would do for any order. Except that you will probably have to pay through the nose, unless picking up returns is part of your existing deal with them. Ordinary shipping companies don't pick up single packages from residential addresses-- I assume that's what this is-- on demand.
And they're not going to stand around and wait for the customer to find the item, and find the box, and fix the label, and...
Insurance seems kind of bogus, since it wasn't lost or damaged in shipment. Probably all you can do is deduct it as a business expense. Remember, courts don't compensate you for travel or time taken off work.
On the other hand, you are perfectly entitled to keep billing them forever.
Just how much is the thing worth? Is there any advantage to having two of them?