2nd injury for employee

I have an employee that was just injured (looks like a broken shoulder)while playing football on his lunch hour at a small community park near our office. Several co-workers, as well as his manager, were playing with him. This employee had a WC claim in January (dropped a 70lb steering gear on his leg)and he has refused to settle with our insurance company. We have calls out to our health insurance agent and our WC agent, but right now my concern is potential liability - since his manager was also involved in the football game. (Man - I hate that sport!) I do need to add that we do not pay for lunch hours. ANY advice or thoughts would be appreciated.

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