Is stopping payment on a check considered fraud if the company did not fulfill the contract?

Question Details:

We paid for additional insurance in our deposit for a moving company to move our items. They damaged many of the items, but refused to leave the information for the insurance, overcharged the balance due. My husband paid them anyway. When I returned home to discover this, I called and told them if they did not rectify the situation, I would stop payment on the check. They did not call by my deadline, so I stopped payment as a joint account holder. I highly suspected that they had no insurance or would never give me the info if they did. As it turns out, they don't have it. Is this legal?

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