Yes! ShipStation offers the following options in the Insurance drop-down menu when configuring shipments:
Carrier insurance: Use this option to add the carrier's insurance to your package. Not necessary if you want only the service's default insurance.
Other: Use this option to indicate on your shipment record you have purchased insurance for this package from a third-party insurance provider.
For details on how to use insurance in ShipStation, review the Insurance Options article in the Ship Orders section of the help guide.