From what I can see it looks like a type of Bristleworm called Eunicid. A closeup of the head would help a lot and if you can count the Antenna next time you see it. If it has 5 Antenna then I have a good chance of being right.
Of all of the Bristle worms Eunicids have the best chance of being predatory. It's not going to harm fish at that size but keep an eye on any corals in the vacinity and look for bite marks.