They need to pay your wages and your medical bills. But the medical bills should include repairing the damage. Get yourself a lawyer who can help you.
WC is supposed to function as wage replacement and payment for necessary and related medical care. In my mind if you tore a muscle and detached it due to a work related accident, the insurance should pay for the surgery to repair the damage. If they are denying coverage, which they are always going to do, then you ought to discuss your claim with an attorney to make sure all of your rights and benefits are being respected and paid out.
This response is to a question posed in what is considered to be a hypothetical situation. The response is for educational and reference purposes only and should not be relied upon as legal counsel. No fees are to be exchanged for this response and the attorney/client relationship has not been established in this context. You should contact an attorney within the jurisdiction of this matter for legal counsel.