Can a compression failure be caused by an low impact collision?

I have a 2016 hyundai tuscon. While driving home I had a deer and skidded
off the road (it is a park area lots of wood and gravel). It didnt seem like a lot
of damage to the cosmetic part of car. But while driving it home the check
engine light came on. Call insurance, and they told me to take it to a shop.
Due to covid they wouldn't come out and just have shop send pictures. The
shop told me the check engine light was a p303 code or a compression
failure, not the spark plugs, wires, or injectors, Said he had to take it apart to
find out what was wrong. The insurance company told him they would not
cover the engine, just the cosmetic damage because hitting a deer couldn't
cause internal damage. I guess my question is..is it possible the gravel and
the hard driving I had to do once I went off road caused a compression
failure? a broken seal? Something got into the piston? What are my options
here? is there anyone I should call etc? Any help would be appreciated