Injury at Staff Apprciation Event

One of our departments went to a Family Fun Center-type place for an employee appreciation event. Attendance was apparently mandatory. While there playing Laser Tag, the Director of the Dept collided with an employee. The employee broke her wrist and lost 2 teeth. The Director also lost a tooth. The employee has filed for worker's comp. I'm very sympathetic to their situation. However, I think the liability of the company can only go so far.
She had to take 3 days off for various procedures. She doesn't want to use her sick time & thinks that we should pay for her time off without docking her sick time. I told her she can either use sick time or file for time-loss through worker's comp. What do you all think? Any advice for how I can explain to her that this is not the company's responsibility? Or do you think I'm being insensitive?

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