The one you linked is a Universal switch for any and all vehicles. If you have an actual Chevy switch, there will be a connector for it available. (post a real pic if not Universal.)
If universal as shown: The only terminal that is always hot is the center one from the battery, of course. You will use a ring tongue crimp-on terminal for that and the others. They usually are insulated or you can shrink sleeve the wire connection area. The actual threaded stud and nut are hard to insulate. As far as something hitting the center terminal:
1. Nobody worries about that.
2. Something can hit the other terminals when they are hot.
3. If you must, use that liquid tape in a can. I have used that. It is messy, so put drip catcher under it until it skins over in a minute or two.
4. The "proper" way is to buy a genuine 55-59 V8 Ignition switch (available) and a genuine switch connector with contacts inside the shell (if available) or use individual female spade connectors on the V8 switch. (available) (Packard 56 style)
Possibly this fits original style V8 switch:
http://www.americanautowire.com/shop/connector-housing-ignition-switch-connecThe original style: switch, tumbler w/keys, bezel indicator, nut and connector will be pricey but correct, nice and can't short out.
