Rinse beans in colander and remove any broken beans or debris, if any.
With Instant Pot set to sauté mode, cook the bacon pieces until fat is fully rendered. For this recipe, I will cook the bacon until it is crispy. Be sure to stir frequently to prevent burning. Once done, remove cooked bacon pieces and set aside to be used later. Keep the grease in the Instant Pot.
Still on sauté mode, add chopped onion and red bell pepper. Stir to coat with fat and then allow to cook, undisturbed, for about 5-10 minutes until they start to get soft and brown. Add garlic, stir, and allow to cook for another few minutes.
Add seasonings to mixture, stir, and allow to cook for a couple minutes.
Add bay leaves, canned tomatoes, rinsed beans, chicken broth, and water. Stir to combine.
Close and lock lid. Set to high pressure for 40 minutes. Once done, allow pressure to naturally release. Once all of the pressure is gone and you can open the lid, stir beans, add cooked bacon pieces, taste, and adjust seasonings, if needed. Beans will appear like there is a lot of liquid at first, but it will slightly thicken as they cool.