[Chilled]

My point on the cost of a new long block been only $4k, is try to get it covered under that $12K cost. $7k for 3 days of work, should cover BMWs rate. With the $1k in parts for any gaskets, hoses, o-rings, etc.

Them doing the seals at $12k, will include them taking your current engine, gearbox, subframe all out. If it's BMW, they wont be doing the seals in the car. Majority of that $12k cost is going to be the labour (time taken) to do the actual seal replacement, not the engine in/out.

Talk to a different BMW shop get an estimate on doing a straight up engine swap. No mention of seals, etc. If your insurer was happy in covering the $12k for the seals, if this BMW shop is under that for a swap. Win!