When David Israel sued Xtreme Protection Services for $120,000 in compensatory damages plus a $2.1 million punitive award — with a third amended complaint alleging that someone acting on Xtreme’s behalf planted eavesdropping devices in his office, put GPS trackers on his vehicles and barraged him with two years of threatening text messages — Xtreme told its errors-and-omissions carrier, Steadfast Insurance Co., that it wanted to pick its own defense attorney, to be paid for by Steadfast.But Steadfast …