Shipping protection can have dynamic pricing if you include it in the checkout button (not as a one tick upsell). Within the checkout button block, navigate to the 'product upsell' section and select the product for shipping protection.
Then tick the 'enable dynamic pricing' checkbox in the setup.
You will then need to create variants of pricing tiers in the shipping protection product itself, so make sure you have incremental pricing set up on the product editor.