Find the answer to your question
Yes, eBay sellers are indeed covered by PayPal seller protection program if the seller 'ship the item to the shipping address listed on the PayPal Transaction Details page'.
REF PayPal seller protection program: https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=security/seller_protection_learn_more.
Additionally, regarding eBay buyer shipping address,
1. eBay sellers are also protected by eBay if the tracking information show proof of delivery from a shipping company that displays:
The recipient's address, displaying at least the city/state or ZIP code (or the equivalent) of the address listed in either the eBay Order details page or the PayPal Transaction Details page.
REF eBay Resolution guider here: http://pages.ebay.com/help/policies/buyer-protection.html#sellers1
2. Your application should use GetOrders call to ensure the order is in a completed status in Checkout for Order.CheckoutStatus.Status and then ship to the address ( which is also displayed in eBay Order details page) returned in OrderArray.Order .ShippingAddress container in GetOrders response for the buyer involved in the order.
REF Order management using Trading API - GetOrders: https://ebaydts.com/eBayKBDetails?KBid=1788
NOTE. For LMS developers, you will need to check OrderDetails.CheckoutStatus in SoldReport, If it's in Complete in OrderDetails.CheckoutStatus.Status field, then retrieve the shipping address information listed below for the order: