You are understanding correctly, and that is what I intended when I designed the game. The one thing to keep in mind is that the players will need room in their Bag to carry the dead Freelancer's stuff. So if they don't have room, they either can't take things with them, or will need to drop some of their own loot to make room.
Thank you for replying!
Ah, so the Bag is meant to store loot as well as consumables! Rules as written, the only time you'd find loot is when a freelancer dies, I think, so everything else in the Bag should always (unless another freelancer died) be consumables, right? This could be made a more serious consideration if the players sometimes found loot on a Job and might have to dump it to make room, as you say; do you think house ruling that change (finding non-consumable loot on a job) will degrade the play experience as you envision it? I could always just try it out, but I'm sure you've thought about it.