Office bearers insurance

Hi, I have just moved into my unit, I live in NSW. When I attended my first Agm I noticed that we did not have any office bearers insurance selected on our insurance.

When I asked our SM about this he said no OB insurance was needed  as the EC do not vote or make decisions on anything that was financial.

Now at this meeting we voted to have new carpet put down in all our stairwells and the only owners present at the meeting were owners who were on the EC. No other owners came.

Isnt this a financial decision that was made by the EC and if so, if anything went wrong, could the EC be leaving themselves potentially exposed.  

What does the new legislation say about this and is this optional? This is the first group of strata units that I have lived in that do not have office bearers insurance. Is there cause for concern. I am worried that this decision is not being cautious enough?

Thanks