I will be honest. I really don't like this guy that much for a few reasons;
1. a BSB with an armour save of 4+ AS only, is not going to survive many hits at all.
2. He will be in a very small unit and as such ranged hits will be able to randomize onto him making the first point even more important.
3. If you do shell out 160 points or so for five models plus a brave to accept challenges (just in case) the model will have a large foot print making it even easier to target/kill off.
4. Jaguar standard on the unit means your wanting to throw him into combat in the late game, and we all know how amazing skinks are in CC

, and your chief is not kitted for fighting at all so the unit will die easily and the chief will not be able to hold his own (unless your killing off goblins or gnoblars)
5. If you are going to keep the terradon riders back so the BSB benefits the army then the terradons are not fulfilling there potential and can easily end up being dead weight.
Now, I've said why I don't like him and I will offer you an alternative.
Skink Chief
BSB
War Drum of Xahutec (for that +1 leadership to units attempting to rally, along with the BSB reroll makes for as certain as can be possible that the unit WILL rally)
Dragonhelm
Light Armour
Shield
for a 4+ AS with a 6+ in CC he has a slightly better save compared to the TerriBSB
combined with
10 Skinks
Musician (Brave and Standards optional)
With this set up his sole purpose is to be the BSB and with the musicians swift reform ability he can cover ground quite fast as he can be 24" from the particular unit(s) that need the banner he can safely chill out until necessary.
with ten other bodies around the opponent needs to kill 6 skinks, not hard at all but if he is tucked away nicely they won't be able to target them by normal means and being stowed away the unit is not likely to be in combat unless things have gone bad.
This unit clocks in at a grand total of 155 points, whereas the minimal cost for the terriBSB is 214 points, 59 points more than the unit that a) has a LOS chance b) has more shots in a stand and shoot, c) is easier to hide.
There are many load outs one can give the skink chief as BSB, but on a Terradon I think its pretty much giving free VPs to the enemy or being a points sink. The one I came up with is by far the best load out, one could replace the chiefs kit with, say the sacred stegadon helm for the +1 leadership and +1 to armour, or the banner of Swiftness for M7 skinks

, maybe even the banner of (discipline?) for just +1 Ld, or the armour of destiny for 4+ ward and 4+ armour.