Invasive HIPAA release

The realease form for workman's comp claim from my employer and their insurance company is listing a total release of all medical and mental health history, including all inpatient hospitaluzations, psychotheray notes, everything!

How is this ok? I simply took a fall at work. I told the claim adjuster that I wasn't comfortable with that complete of disclosure and that HIPAA release forms should be very specific. She deflected and said it's standard.

If I refuse to sign it, can they deny my claim?